Indonesia’s poverty rate hits 20-year low amid reforms, but rural gap persists, says stats agency

JAKARTA, July 26 — The number of Indonesians living under the poverty line has hit a record low for the past two decades, the country’s statistics bureau said yesterday.

According to the Central Statistics Agency, there were roughly 23.85 million Indonesians living in poverty as of March this year — representing 8.47 per cent of the country’s total population of 280 million.

BPS categorises people living off Rp 609,160 a month, about US$37 (RM156), as poor.

“The poverty line figure for 2025 is the lowest for the past two decades,” the agency’s senior official, Ateng Hartono, told a press conference.

However, the agency noted the significant gap between big cities and rural areas, with villages still seeing a higher poverty rate.

This photo taken on June 11, 2025 shows a general view of traditional raised stilt houses in Bangsal, South Sumatra. The Central Statistics Agency noted the significant gap between big cities and rural areas, with villages still seeing a higher poverty rate. — AFP pic

Jakarta last week struck a trade deal with the United States that will see Indonesian goods hit with a 19 per cent tariff — lower than the threatened rate of 32 per cent.

According to Washington, nearly all US goods will be able to enter Indonesia tariff-free.

Indonesia’s Coordinating Minister of Economics Airlangga Hartarto said earlier this week that if Washington had insisted on the 32 per cent tariff, around one million Indonesians could lose their jobs and the poverty rate could increase. — AFP

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