Jakarta, The PRAKARSA – The research and policy advocacy institute PRAKARSA responding to the release of national poverty figures issued by the Central Statistics Agency (BPS) on July 25, 2025. The release of poverty figures was based on the results of the March 2025 National Socioeconomic Survey (Susenas), which recorded a decline in poverty to 8,47 percent or 23,85 million, down from 8,57 percent from the September 2024 Susenas results.
PRAKARSA We appreciate the government's steps to reduce poverty rates nationally. However, some indicators, such as urban poverty rates, have actually increased.
Some critical notes
Pierre Bernando Ballo, social policy researcher PRAKARSA, provides some critical notes. First, Just because someone is categorized as non-poor based on the Susenas (National Survey), it doesn't mean they don't actually live in poverty. This is because BPS still uses the old monetary-based method of measuring the food poverty line (GKM) and non-food poverty line (GNKM), commonly known as the poverty method. Cost of Basic Needs (CBN). “This method is quite oudated and has not changed for nearly three decades. Yet, consumption patterns, deprivation, and other factors contributing to poverty have changed."
Pier suggested that BPS revise its poverty line calculation methodology. "One thing we could consider is the Multidimensional Poverty Indicator (MMI), so that non-monetary factors can also be taken into account."
PRAKARSA has been measuring and advocating for the Multidimensional Poverty Rate (MMR) since 2011. As of 2022, there were approximately 14 million people in multidimensional poverty. The MMR not only calculates poverty based on food and non-food expenditures, but also other factors such as lack of clean drinking water, housing conditions, and morbidity rates. "For example, if someone lives in an uninhabitable house, they can be considered poor. However, because this indicator cannot be translated into expenditure, they are categorized as not poor based on BPS calculations."
The government needs to not only raise the poverty line but also widen it. Specifically, it needs to highlight factors that often can't be quantified as expenditures, but can contribute to poverty.
PRAKARSA is an institution think tanks which focuses on social, economic and financial policy issues, and sustainable development. From 2011 to 2021, PRAKARSA has conducted a study on Multidimensional Poverty Indicators (IKM) at the national level and in 34 provinces.