This effort aims to ensure that policies can be precisely targeted, thereby accelerating the reduction of Indonesia’s poverty rate. However, when discussing poverty data, one crucial issue remains a topic of ongoing debate.

Currently, the poverty line used to determine whether a person is considered poor continues to be the subject of much criticism and is often considered inadequate. According to the World Bank (2024), Indonesia’s poverty line is now close to the average poverty line for low-income countries, while Indonesia itself has already reached upper-middle-income country status.

Statistics Indonesia (BPS) is the official agency responsible for publishing poverty statistics in the country. To calculate poverty, BPS has traditionally used the basic needs approach, a method that aligns with the Poverty and Inequality Handbook published by the World Bank. This method is also used by other developing countries.

Calculating poverty requires setting a poverty line, which reflects the minimum monthly expenditure in rupees that an individual needs to meet their basic living needs, including essential food and non-food items.

The poverty line is made up of two elements: the food poverty line (the minimum expenditure necessary for food, equivalent to 2,100 kilocalories per capita per day) and the non-food poverty line (the minimum expenditure necessary for essential non-food items). Individuals whose average monthly expenditure per capita is below this poverty line are then classified as poor.

Every Thursday

Whether you’re looking to broaden your horizons or stay informed about the latest developments, Viewpoint is the ideal source for anyone looking to address the issues that matter most.

for subscribing to our newsletter!

Please check your email for your newsletter subscription.

See more newsletters

Since 1984, the BPS has calculated poverty rates, first published in the report “The Number and Percentage of the Poor Population in Indonesia 1976-1981”. Essentially, the method used has remained the same until now.