Indonesian Gov't, House Set 2026 Extreme Poverty Target at 0-0.5 Percent

TEMPO.CO, Jakarta - The House of Representatives' (DPR) Budget Committee and the government have agreed on the targets and indicators for the 2026 basic macroeconomic development assumptions.

One of the key targets is to reduce the extreme poverty rate to a range between 0 and 0.5 percent. Previously, the government proposed a zero percent target for extreme poverty by 2026.

This agreement was read aloud by Marwan Cik Asan, a member of the Budget Committee from the Democratic Party Faction, during a meeting with the Minister of Finance, the Minister of National Development Planning/Head of Bappenas, and the Governor of Bank Indonesia.

“The poverty level is between 6.5 and 7.5 percent, while the extreme poverty level is between 0 and 0.5 percent,” said Marwan at the Parliament Complex in Jakarta on Tuesday, July 22, 2025.

The Budget Committee also approved several other macro indicators. The Gini ratio is set between 0.3777 and 0.380, the open unemployment rate between 4.44 and 4.96 percent, and the human capital index at 0.57. For development indicators, the farmer welfare index is targeted at 0.7731, while the proportion of formal employment creation is projected at 37.95 percent.

Chairperson of the Budget Committee, Said Abdullah, explained that the adjustment to the extreme poverty target reflects current conditions.

“Previously, the government aimed for zero percent by 2024, revised from one percent to 0.83 percent. In 2025, we expected 0.83 percent to reach zero. Based on the latest developments, the expectation now is for that figure to fall between 0.5 and zero percent,” Said told reporters after the meeting.

Earlier, the Central Statistics Agency (BPS) announced the postponement of the release of Indonesia’s poverty and inequality data for the first semester of 2025, which was originally scheduled for Tuesday, July 15.

“To ensure data accuracy and quality, BPS will postpone the release of the poverty figures, which we will announce in the near future,”mthe agency stated in a press release on that date.

Meanwhile, President Prabowo Subianto stated that both the unemployment and absolute poverty numbers have declined. He said the data was provided by the Head of BPS, Amalia Adininggar, although he did not cite specific figures.

“The Head of BPS reported to me that the unemployment figure has decreased and the absolute poverty figure has decreased. This is according to BPS,” Prabowo said during the PSI Congress in Solo, Central Java, on Sunday, July 20, as broadcast on the party’s YouTube channel.

Following a revision of the global poverty threshold by the World Bank, the number of Indonesians living in extreme poverty in 2024 rose to 15.42 million people, or 5.5 percent of the population. Under the previous poverty line, the number stood at 3.56 million, or 1.26 percent.

According to BPS data, the percentage of Indonesians living in extreme poverty in March 2024 was 0.83 percent. This marked a 0.29 percentage point decline from March 2023, when the figure was 1.12 percent.

Hendrik Yaputra contributed to the writing of this article.

Editor's Choice: BPS to Release Indonesia's Latest Poverty Data This Friday

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