Reporter: Dendi Siswanto/Siti Masitoh/Nurtiandriyani Simamora
"If the released data doesn't align with the reality on the ground, not only will the public lose their grip, but national economic policy will also be misguided," said Paramadina University.
The Prakarsa Institute also criticized the method of calculating poverty figures used by BPS.
The Prakarsa Social Policy Researcher, Pierre Bernando Ballo, said that BPS still relies on monetary-based methods by measuring the food and non-food poverty line, or the cost of basic needs.
"This method is quite outdated and hasn't been changed in almost three decades. Yet, people's consumption patterns, deprivation, and other factors causing poverty have changed," he said.
Sigmaphi Indonesia also released findings that in 2023, 42,9 percent of Indonesia's population, or approximately 118,73 million people, would still be living in inadequate conditions.
This calculation uses a basic rights-based approach, different from the basic needs approach used by BPS.
Sigmaphi recommends that the government amend official indicators of well-being to include basic rights, and prioritize the provision of food and housing.
CELIOS Media Public Policy Director Wahyudi Askar explained at a public discussion in Jakarta in May 2025 that the BPS approach still relies on a poverty line based on calorie sufficiency and household expenditure.
"This approach was valid in the 1970s, but it fails to address contemporary challenges such as debt burdens, unequal access to services, and middle-class financial pressures," he said on Wednesday, May 28, 2025.
He gave the example of households that are entangled in online loans or forced to sell assets for their children's education, often not being recorded as poor because their expenses are considered high.
In fact, the poverty line currently used is derived from a reference group with declining purchasing power, creating the illusion of poverty improvement even though welfare is actually worsening.
Policy Risk and Data Inequality
This situation has serious implications for policy formulation. Social assistance schemes are potentially mistargeted, and Indonesia's social protection budget as a ratio to GDP is one of the lowest in Asia.
CELIOS Executive Director Bhima Yudhistira said that Indonesia does not need to hesitate to revise the poverty line.
"Malaysia revised its social assistance program in 2019 to expand the scope of social assistance. Meanwhile, Indonesia remains hesitant due to concerns about a surge in poverty rates that could burden the state budget, especially amidst a low tax ratio and rising debt maturing this year," Bhima said.
He also assessed that stimulus packages such as the Wage Subsidy Assistance (BSU) were ineffective because they re-created a gap between formal and informal workers.
The data base used still comes from BPJS Employment, so informal workers such as motorcycle taxi drivers, contract workers, and outsourcing workers are again excluded.
CELIOS Executive Director, Bhima Yudhistira, believes that revising the poverty line should not be taboo.
"Malaysia revised its social assistance program in 2019 to expand the scope of social assistance. Meanwhile, Indonesia remains hesitant due to concerns about a surge in poverty rates that could burden the state budget, especially amidst a low tax ratio and rising debt maturing this year," Bhima said.
According to him, the ineffectiveness of stimuli such as the Wage Subsidy Assistance (BSU) has again created a gap between formal and informal workers.
The data base used still comes from BPJS Employment, so informal workers such as motorcycle taxi drivers, contract workers, and outsourcing workers are again excluded.
Proposed Data Redefinition and Reform
CELIOS proposes a redefinition of poverty using a disposable income approach, namely the income available after basic needs and obligations are met.
This is considered to better reflect the real conditions of households and takes into account geographical factors and the burdens of life of the sandwich generation.
For reference, CELIOS refers to the European Union model which has implemented the concept of a “decent life” as an indicator of poverty, which includes dimensions of health, education, unemployment, and citizen happiness.
CELIOS emphasized that poverty data should be used as a policy evaluation tool, not a political one. Poverty rates should be used to assess the effectiveness of fiscal policies, such as the Free Nutritional Meals program, the Family Hope Program (PKH), or fertilizer subsidies.
If it does not have an impact on poverty reduction, the program should be re-evaluated.
CELIOS also pushed for the issuance of a Presidential Regulation (Perpres) regarding a new methodology for measuring poverty.
This Presidential Decree is expected to serve as a basis for cross-institutional coordination, data integration, and harmonization of national poverty alleviation programs.
source: Tribunnews.com