🏢When the World Bank Says Indonesia's Poverty Rate is 60%, Gov’t Sets Ambitious 6.5% Target🏢

Indonesia’s government eyes single-digit poverty next year—while the World Bank paints a far grimmer picture.

🧾 The Highlights:

1️⃣ Poverty Rate Target: 6.5%–7.5% by 2026

Finance Minister Sri Mulyani stated during a parliamentary session that the government aims to cut poverty to as low as 6.5% in 2026, improving from the 2025 target range of 7%–8%.

2️⃣ Unemployment Targeted at Below 5%

The administration also plans to reduce open unemployment to 4.44%–4.96%.

3️⃣ Macroeconomic Outlook

GDP growth is projected at 5.2%–5.8%, with inflation under control at 3.5%.

4️⃣ Data Dispute: BPS vs. World Bank

While Indonesia’s Central Statistics Agency (BPS) reported a poverty rate of 8.57% as of September 2024, the World Bank raised eyebrows with a significantly higher estimate—stating that 60.3% of Indonesians are below the global poverty line.

🔍 Why It Matters:

The stark contrast between national and international data highlights a critical gap in poverty measurement methodologies—and sets the stage for scrutiny of how Indonesia defines and combats poverty under the incoming administration.

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