How Far Has BPS Progressed in Revising Indonesia's Poverty Standard?
BPS is reviewing the poverty line methodology to reflect changes in consumption patterns and Indonesia's socio-economic conditions.
Statistics Indonesia (BPS) has shared updates on the ongoing efforts to revise Indonesia's poverty standard. They have emphasized that they are still studying and refining the methodology for calculating the poverty line. This revision aims not only to raise the nominal poverty line but also to ensure the measurement method remains relevant to evolving consumption patterns and socio-economic conditions across Indonesia.
BPS clarified that their focus encompasses all determinants of the poverty line, including both food and non-food requirements.
Key aspects under analysis involve the food requirements, which entail studying the base year, reference population, commodity basket, prices, consumption quantities, and energy sufficiency thresholds. Potential modifications include adopting the 2024 base year, expanding the food basket from 52 to 57 commodities, and establishing a fixed energy sufficiency threshold of 2,100 kilocalories per person per day per day.
In the realm of non-food needs, BPS is examining the adjustment of the commodity basket through direct and indirect methods, considering a food share and total expenditure approach.
Moreover, the mechanism for updating the poverty line in future periods is also a point of consideration, aiming to capture alterations in prices and economic conditions. BPS has noted that finalizing the formula, parameters, and implementation timing remains pending. The adjustments necessitate empirical evidence, statistical principles, data comparability across periods, and insights from experts and stakeholders.
Presently, the national poverty line stands at Rp3,091,866 per household per month. Economics researcher Deni Friawan from the Centre for Strategic and International Studies (CSIS) criticized the current standards, asserting that they are insufficient. Friawan contended that BPS's current poverty standard merely gauges minimal living requirements, not the benchmark for a decent standard of living across various regions of Indonesia.
He argued that the existing measures should reflect the true extent of a decent living standard in Indonesia, considering regional differences.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
