Jakarta (10/9)-- On August 5, the Central Bureau of Statistics (BPS) released the national poverty rate report as of March 2026 at 8.07%. On the other hand, based on the classification of upper-middle-income countries, the World Bank estimates that 64.1% of Indonesia's population lives below the poverty line with a standard of US$8.30 PPP or around IDR 51,087 per person per day. The explanation regarding poverty figures according to BPS and the World Bank is outlined below.
Why are the poverty rates according to BPS and the World Bank different? Both BPS and the World Bank use Indonesia's National Socio-Economic Survey (SUSENAS) as a data source, but both measure poverty in different ways because the measurements have different purposes.
BPS measures poverty based on the cost of living in Indonesia. BPS calculates the minimum amount of expenditure a person needs to meet food and other basic needs, such as housing.clothing, and transportation, in 75 urban and rural areas in each province, and updating these figures twice a year to adjust for price changes. In March 2026, this threshold was recorded at Rp669,235 per person per month, or about US$3.60 per day. This national poverty line is designed to provide a more accurate picture of poverty by reflecting the standards and living conditions of the Indonesian population. The World Bank uses an international poverty line to compare living standards across countries. This requires the same standard, not a poverty line based on each country's prices and consumption patterns. The World Bank uses three international poverty benchmarks adjusted for three groups of countries by income: US$3.00 per day (equivalent to Rp18,465 per day) for low-income countries, US$4.20 (Rp25,851 per day) for lower-middle-income countries, and US$8.30 (Rp51,087 per day) for upper-middle-income countries. This benchmark is based on the poverty line commonly used by countries within each income group and is adjusted so that the same amount of money can buy comparable groups of goods across different countries. The World Bank's poverty estimates take into account three types of price dynamics: changes over time using the CPI (Consumer Price Index), differences across regions (districts/cities), and differences in prices between countries using Purchasing Power Parity (PPP) adjustments. Which poverty rate should be used as a reference for policymaking and monitoring progress in Indonesia? National and international poverty definitions are deliberately made different because they serve different purposes, and both are suitable for their respective uses. The national poverty line is set by the government and is specific to each country with its own context. This line is used to as a basis for national policy and to monitor progress in poverty alleviation efforts. To track Indonesia's progress and formulate economic and national development policies, the measures set by BPS are the most relevant. Based on these benchmarks, the poverty rate dropped from 8.47% in March 2025 to 8.07% in March 2026. For a global perspective, the World Bank's 2025 estimates show that 3.7% of Indonesia's population is in extreme poverty, or 15.5% below the poverty line for lower-middle-income countries, or 64.1% below the poverty line for upper-middle-income countries. What causes such a big difference? This large difference mainly relates to how the poverty line is determined, not because living conditions are worsening. When Indonesia's income level rose to an upper-middle-income country in 2023, the World Bank raised the poverty threshold it uses, from US$4.20 becomes US$8.30 per person per day. With a higher threshold, it naturally means more people fall below it; this doesn’t mean they are poorer. The US$8.30 also reflects the standard of living in the broader group of upper-middle-income countries, including countries with per capita incomes of almost three times that of Indonesia. Therefore, this figure sets a higher standard compared to the standard of living in Indonesia. The two measures also treat price changes over time differently. BPS adjusts its poverty line along with changes in consumption patterns and living standards, while the World Bank applies a fixed international standard and adjusts it for inflation. As a result, the two measures can show different poverty reduction trends. So what do these poverty figures actually show? Poverty estimates Data from BPS and the World Bank use the same basic data, but they answer different questions. BPS measures poverty in the context of Indonesia, so it’s useful for tracking progress and domestic policy. The World Bank uses the international poverty line to compare living standards across countries. In this case, one measure isn’t more 'right' than the other; both have different goals and offer complementary perspectives on poverty reduction efforts in Indonesia.
Media Contact: Favten Ari Pujiastuti,
Head of the General and Public Relations Bureau, Statistics Indonesia, [email protected]; Lestari Boediono, Senior External Affairs Officer, World Bank Group Indonesia and Timor Leste, [email protected] 
