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Jakarta (ANTARA) – The Indonesian government is committed to making strategic changes to efforts to alleviate poverty, which is expected to be reduced further across the country.
“We have shifted the focus of the state budget to human development, while infrastructure projects continue with greater private sector involvement, overall creating prosperity for all Indonesian people,” Presidential Communication Office (PCO) spokesperson Dedek Prayudi said in a press release on Monday.
He issued the statement in response to the World Bank’s latest release on the global poverty line, based on purchasing power parity (PPP) in 2021.
In the release, 5.4 percent of Indonesians were classified as extremely poor in 2024, while 19.9 percent and 68.3 percent were classified to be below the lower-middle and upper-middle poverty thresholds, respectively.
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However, the PCO said that although the World Bank figures can be used in global analysis, Indonesia is continuing to emphasize that the official national poverty rate measured by the Central Statistics Agency (BPS) remains its most relevant reference.
The BPS poverty measurement framework is designed to inform targeted and evidence-based policies that address the specific needs of the Indonesian people.
In addition, according to the BPS, the difference between the national and international poverty lines stems from their different purposes: the international line serves as a global benchmark, while the national line is adjusted to suit domestic policy relevance.
According to the BPS, Indonesia’s poverty rate stood at 8.57 percent as of September 2024. It was calculated using a methodology that reflects local consumption patterns, regional price variations, and socioeconomic realities, it said.
The Indonesian government remains committed to transparency, data integrity, and the use of country-based statistics to guide its poverty reduction strategy.
It lauded the World Bank’s continued collaboration and recognition that the national poverty line is the most appropriate tool for country-specific policy discussions.
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Prayudi also highlighted the adoption of the Multidimensional Deprivation Index (MDI) developed by the Ministry of Finance, UNICEF, and the University of Indonesia to enrich the poverty reduction strategy.
The MDI is a powerful tool to uncover hidden deprivation and encourage smarter and more inclusive public investment, as per the Ministry of Finance’s document on the 2026 Macroeconomic Framework submitted to the parliament in May 2025.
Prayudi said that childhood poverty is not just about income—it concerns access to clean water, nutrition, education, and safe living conditions. “It is not about ensuring numbers that matter, it is about every person, every child has the tools to thrive,” he added.
To that end, he underlined the government’s commitment to long-term poverty alleviation through massive investment in education, health, and nutrition, especially through flagship programs such as the Free Nutritious Meal (MBG) initiative.
“This approach underlines President Prabowo’s (Subianto) belief that sustainable poverty alleviation must be rooted in human resource development—not just short-term assistance,” he added.
Related news: Indonesia shifts poverty focus to empowering communities
Reporter: Yoanita Hastryka Djohan
Editor: Rahmad Nasution
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