đą Indonesia Aims for 6.5% Poverty RateâWhile World Bank Cites 60% Living in Poverty đą
Indonesiaâs government is setting its sights on sharply reducing poverty, even as the World Bank offers a far more sobering assessment.
đ§Ÿ Key Points:
1ïžâŁ Poverty Rate Goal: 6.5%â7.5% by 2026
Finance Minister Sri Mulyani told parliament that the government aims to slash the poverty rate to as low as 6.5% by 2026âdown from the 7%â8% target set for 2025.
2ïžâŁ Unemployment Target: Under 5%
Open unemployment is projected to drop to between 4.44% and 4.96%, as part of broader economic goals.
3ïžâŁ Economic Projections
Indonesia forecasts GDP growth of 5.2%â5.8% in the near term, with inflation expected to remain at a manageable 3.5%.
4ïžâŁ Clashing Numbers: BPS vs. World Bank
Indonesiaâs 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.
đ Why This Matters:
The vast disparity between domestic and global poverty figures reveals more than a statistical disagreementâit 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.
