BPS: Urban Poverty on the Rise as Poverty Rates in Rural Areas Drop

TEMPO.CO, Jakarta – Statistics Indonesia (BPS) reported that urban areas are seeing increased poverty rates, while rural areas are logging the opposite. Urban poverty rates have risen to 6.73 percent in March 2025, with 11.27 million people, from 6.66 percent in September 2024. Meanwhile, poverty in rural areas slipped from 11.34 percent, or around 13.01 million people in September 2024, to 11.03 percent, or around 12.58 million people in March 2025.

The data was derived from the March 2025 National Socio-Economic Survey carried out in February 2025, involving 345,000 households spread across 38 provinces and 514 districts/cities.

BPS Deputy for Social Statistics Ateng Hartono said several factors influence the rise in urban poverty, with the first being the surge in underemployment in urban areas. Underemployed individuals are those who work less than 35 hours and are still seeking employment.

“The number of underemployed individuals in urban areas in February 2025 grew by 0.46 million people compared to August 2024,” Ateng said in a press conference at the BPS Office on Friday, July 25, 2025.

The second factor is the rise in food commodity prices, such as cooking oil, bird’s eye chili, and garlic. According to Ateng, the majority of city dwellers rely on market prices because they do not produce their own food. A surge in prices ultimately affects the purchasing power of the population, especially the poor and vulnerable groups.

Ateng also attributes the rise in the open unemployment rate for male workers in urban areas. The open unemployment rate in February 2025 slipped to 4.76 percent from the previous 4.91 percent in August 2024. However, upon further investigation, the open unemployment rate for men increased, while that for women decreased.

“Upon further investigation, the increase in the open unemployment rate for men occurred in urban areas,” Ateng said.

BPS recorded an increase in the open unemployment rate for men from 5.87 percent in August 2024 to 6.06 percent in February 2025. Meanwhile, Ateng stated that a large number of men play a key role in the economy. Therefore, this affects urban poverty.

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