Is Indonesia’s Poverty Rate 8.07% or 64.1%, and Why Are the Figures Different?

Two widely different estimates of poverty in Indonesia appeared within a short period. Statistics Indonesia, or BPS, reported that 8.07% of the population was below the national poverty line in March 2026. The World Bank estimated that 64.1% was below the US$8.30 purchasing power parity, or PPP, line used for upper-middle-income countries.

The figures do not cancel each other out. BPS and the World Bank rely on Indonesia’s National Socioeconomic Survey, or SUSENAS, but use poverty thresholds designed for different purposes.

BPS measures whether expenditure is sufficient to cover basic needs in Indonesia. The World Bank uses international lines to compare living standards across countries.

The 64.1% estimate therefore does not mean Indonesia’s official poverty rate suddenly increased from 8.07%. It indicates that a large share of the population remains below the consumption standard used for the wider upper-middle-income group.

Comparison between Indonesia’s national poverty rate and the World Bank’s upper-middle-income poverty benchmark. Source: Joint statement by BPS-Statistics Indonesia and the World Bank, September 11, 2026.

What Does BPS Measure?

BPS calculates the national poverty line from the expenditure needed to meet basic food and non-food requirements.

In March 2026, BPS reported:

• a national poverty rate of 8.07%;

• 22.93 million people living below the line;

• an urban poverty rate of 6.34%;

• a rural poverty rate of 10.67%;

• an average national poverty line of Rp669,235 per person per month.

The rate declined by 0.18 percentage points from September 2025 and by 0.40 percentage points from March 2025.

The national average does not mean that the same threshold applies everywhere. BPS estimates poverty lines for urban and rural areas across the provinces because living costs vary by location.

Food Still Dominates the Poverty Line

Of the Rp669,235 monthly poverty line, Rp499,886, or 74.70%, represented food needs. Non-food needs accounted for Rp169,349, or 25.30%.

Indonesia’s March 2026 poverty line and its food and non-food components. Source: BPS-Statistics Indonesia, August 5, 2026.

For a simplified four-person household illustration:

Rp669,235 × 4 = Rp2,676,940 per month

This is not a universal household threshold. Location and household composition still matter.

Why Does the World Bank Report 64.1%?

The World Bank uses international poverty lines for cross-country comparison. These lines use PPP rather than current foreign-exchange rates.

The joint statement presents three benchmarks:

• US$3.00 PPP per day for low-income countries;

• US$4.20 PPP per day for lower-middle-income countries;

• US$8.30 PPP per day for upper-middle-income countries.

The World Bank’s 2025 estimates place 3.7% of Indonesians below the US$3.00 line, 15.5% below US$4.20, and 64.1% below US$8.30.

These are cumulative measures. They should not be added together.

A Higher Country Classification Brings a Higher Benchmark

Indonesia entered the upper-middle-income category in 2023. The international benchmark used for the country consequently moved from US$4.20 to US$8.30 per person per day.

A higher line naturally places more people below it. This does not mean their living conditions suddenly deteriorated. The standard used for comparison changed.

The upper-middle-income group also includes economies with income per capita substantially above Indonesia’s. The US$8.30 line therefore represents a broader living-standard benchmark, not Indonesia’s official minimum-needs line.

PPP Is Not the Current Dollar Exchange Rate

US$8.30 PPP should not be multiplied by the dollar rate displayed by a bank or trading platform. PPP estimates how much local currency is needed to buy goods and services with comparable purchasing power.

BPS and the World Bank place the Indonesian equivalent at roughly Rp51,087 per person per day.

A simple 30-day calculation gives:

Rp51,087 × 30 = Rp1,532,610 per person per month

For four people:

Rp1,532,610 × 4 = Rp6,130,440 per month

This is roughly 2.3 times the simplified four-person amount derived from BPS’s national average poverty line. The much higher threshold explains most of the difference between 8.07% and 64.1%.

The calculation is illustrative. It is not an official household budget or an individual poverty assessment.

The Reference Periods Also Differ

The two figures do not refer to exactly the same period:

• 8.07% measures conditions in March 2026;

• 64.1% is a World Bank estimate for 2025;

• both use SUSENAS as a core source;

• their thresholds and policy purposes differ.

The reference-period difference is not the primary reason for the large gap, but it still needs to be disclosed.

Which Figure Is Correct?

Both are appropriate for their intended use.

The BPS figure is the relevant measure for Indonesia’s official poverty monitoring and domestic policymaking. The World Bank line is useful for international comparison and assessing how far household expenditure remains from the standard associated with upper-middle-income economies.

The 64.1% estimate should not be described as Indonesia’s official poverty rate. The 8.07% rate should also not be interpreted to mean that only 8.07% of the population faces financial pressure.

Many households may sit slightly above the national poverty line without sufficient savings, insurance, income stability, or emergency capacity.

What Matters Next?

Relevant indicators include:

• food inflation;

• real wages;

• employment quality;

• rural and urban poverty;

• household consumption;

• retail sales;

• social-assistance coverage;

• the next SUSENAS poverty release.

The two poverty figures answer different questions. Understanding the threshold, period, data source, and purpose is more useful than selecting one number and rejecting the other.

Disclaimer

This article is provided for information and education only. Household calculations are simplified illustrations and do not determine anyone’s official poverty status. Poverty statistics may change with new releases, revisions, or methodological updates. Consult the latest BPS and World Bank publications for current figures.