Indonesia's Extreme Poverty Rate Falls to 0.85% in March 2025, Claims BPS

6 days ago 11

TEMPO.CO, Jakarta - Indonesia's Central Statistics Agency (BPS) reported that the extreme poverty rate in March 2025 fell to 0.85 percent, affecting approximately 2.38 million people. This marks a decrease from September 2024, which recorded 2.78 million people or 0.99 percent, and also from March 2024, when it stood at 3.56 million people or 1.26 percent.

"[This figure] decreased by 0.40 million people compared to September 2024, and compared to the same time last year, or March 2024, by 1.18 million people compared to March 2024," stated Ateng Hartono, BPS Deputy for Social Statistics, during a press conference in Central Jakarta on Friday, July 25, 2025.

Ateng clarified that the extreme poverty calculation adheres to the World Bank's 2017 standard, which uses a purchasing power parity (PPP) of US$2.15 per day. PPP is a conversion method that adjusts purchasing power between countries.

Discrepancy with New World Bank Standard

This extreme poverty figure differs from the latest World Bank data released in June, which revised the international poverty line to a 2021 PPP of US$3.00 per day.

Referring to this new standard, the number of extremely poor people in Indonesia in September 2024 would increase significantly to 15.42 million people (5.5 percent). In contrast, using the old poverty line for September 2024, the extreme poverty rate was 3.56 million people (1.26 percent).

Ateng explained that BPS continues to use the older World Bank standard to ensure continuity and alignment with the National Medium-Term Development Plan 2025-2029, which still references the US$2.15 PPP per capita per day. "This is for continuity in evaluating it," he added.

Overall Poverty Rate

The BPS also recorded the overall national poverty rate in March 2025 at 8.47 percent, or about 23.85 million people. This figure represents a decrease of 0.20 million people or 0.10 percentage points compared to September 2024, which was 24.06 million people or 8.57 percent.

Ateng mentioned that the National Socio-Economic Survey data for March 2025 was collected in February 2025, as March coincided with the fasting month of Ramadan. The survey sample included 345,000 households spread across 38 provinces and 514 districts/cities.

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