🏢 Indonesia Aims for 6.5% Poverty Rate—While World Bank Cites 60% Living in Poverty 🏢
Indonesia’s government is setting its sights on sharply reducing poverty, even as the World Bank offers a far more sobering assessment.
🧾 Key Points:
1️⃣ Poverty Rate Goal: 6.5%–7.5% by 2026
Finance Minister Sri Mulyani told parliament that the government aims to slash the poverty rate to as low as 6.5% by 2026—down from the 7%–8% target set for 2025.
2️⃣ Unemployment Target: Under 5%
Open unemployment is projected to drop to between 4.44% and 4.96%, as part of broader economic goals.
3️⃣ Economic Projections
Indonesia forecasts GDP growth of 5.2%–5.8% in the near term, with inflation expected to remain at a manageable 3.5%.
4️⃣ Clashing Numbers: BPS vs. World Bank
Indonesia’s statistics agency (BPS) reported an 8.57% poverty rate as of September 2024. But the World Bank shocked many by estimating that 60.3% of Indonesians live below the international poverty line, reflecting deeper structural issues.
🔍 Why This Matters:
The vast disparity between domestic and global poverty figures reveals more than a statistical disagreement—it underscores fundamental differences in how poverty is defined and measured. With a new administration incoming, the spotlight is on how Indonesia plans to bridge that gap and deliver real progress.
