Tempo Eksplainer: Kenapa Kemiskinan Indonesia Tertinggi di ASEAN?

Summary

The video discusses Indonesia's high poverty rates, with over 60% of the population estimated to be living below the poverty line by 2024. The World Bank compares Indonesia’s poverty levels to other ASEAN countries like Malaysia and Vietnam, highlighting how Malaysia has successfully reduced poverty through wage increases and job creation. In contrast, Indonesia faces challenges due to its informal labor market and lack of sufficient job opportunities. The Indonesian government is focusing on empowering communities through industrialization, targeting sectors like food, education, and infrastructure to tackle poverty.

Takeaways

• 😀 More than half of Indonesia's population is living below the poverty line, estimated at 171.9 million people or 60.3% by the end of 2024, according to the World Bank.
• 😀 The poverty line in Indonesia is defined as spending below 6.85 USD per day, equivalent to 108,000 IDR in 2024, based on the exchange rate.
• 😀 Indonesia's poverty rate is relatively high compared to other ASEAN countries, with Malaysia's rate projected to be only 1.3% in 2024.
• 😀 Malaysia's government successfully reduced poverty by increasing the minimum wage by 13.3%, benefiting 4.37 million workers.
• 😀 Vietnam's poverty rate is considerably lower than Indonesia's, at just 18.2% using the same poverty calculation standard (6.85 USD per day).
• 😀 Vietnam has improved its labor market performance, with employment growing by 3.4% in November 2024, contributing to a reduction in poverty.
• 😀 Even with a lower spending threshold (3.65 USD per day), Indonesia's poverty rate remains high at 15.6%, much higher than Malaysia's 1.3% and Vietnam's 3.8%.
• 😀 Abdul Manap Pulungan from the Institute for Development of Economic and Finance states that raising the minimum wage in Indonesia is not a viable solution due to the prevalence of informal employment.
• 😀 Indonesia faces a greater need for additional job creation rather than just wage increases, as the job availability index has decreased since early 2025.
• 😀 The Indonesian government is developing a comprehensive program to empower the poor, focusing on industrialization across nine sectors, with priority on food, construction materials, and education.

Q & A

What is the poverty rate in Indonesia as of the end of 2024?

The poverty rate in Indonesia is estimated to be 60.3%, affecting around 171.9 million people according to the World Bank.

How does the World Bank define poverty in Indonesia for 2024?

The World Bank defines poverty in Indonesia as individuals spending less than 6.85 USD per day, which is approximately 108,000 IDR based on the exchange rate in 2024.

How does Indonesia's poverty rate compare to other ASEAN countries like Malaysia and Vietnam?

Indonesia's poverty rate is much higher compared to other ASEAN countries. Malaysia's poverty rate is estimated at 1.3%, while Vietnam's is at 18.2%, using the World Bank's poverty line of 6.85 USD per day.

What measures has Malaysia taken to reduce poverty?

Malaysia has reduced poverty by increasing the minimum wage by 13.3% in February 2024, from RM1,500 to RM1,700, benefiting 4.37 million workers.

What factors have helped reduce poverty in Vietnam?

In Vietnam, improvements in labor market conditions and the increase in real income by 4.8% in 2024 have contributed to reducing poverty, along with a 3.4% increase in employment in November 2024.

What is the poverty rate in Indonesia when using a lower poverty threshold of 3.65 USD per day?

Using a poverty threshold of 3.65 USD per day, Indonesia's poverty rate is 15.6%, while Vietnam's is 3.8% and Malaysia's is 1.3%.

Why is increasing the minimum wage in Indonesia not seen as a solution to poverty?

Increasing the minimum wage in Indonesia is not a solution because most of the labor force is in the informal sector, and minimum wage increases often don't outpace the rise in poverty levels.

What is the current trend in the availability of job opportunities in Indonesia?

The availability of job opportunities in Indonesia has been declining, with the job availability index dropping from 107.7 in January 2025 to 100.3 in March 2025.

What sectors dominate investments in Indonesia, and why is this problematic for poverty reduction?

Investments in Indonesia are mainly in capital-intensive sectors, which require fewer workers, thus not helping in creating sufficient jobs for poverty reduction.

What is the Indonesian government's strategy to combat poverty in the long term?

The Indonesian government is developing a comprehensive community empowerment program, focusing on industrializing sectors like food, building materials, education, digital, healthcare, transportation, renewable energy, and mineral processing, aiming to create new job opportunities for the poor.