Bak Langit & Bumi Beda Kemiskinan RI Versi BPS & Bank Dunia

Summary

The video script delves into the differing poverty statistics in Indonesia reported by the World Bank and Indonesia's Central Statistics Agency (BPS). The World Bank's report suggests that 60.3% of Indonesia’s population lives in poverty based on an international standard, while BPS reports a much lower figure of 8.57%, calculated based on basic local needs. The disparity arises from different poverty lines: the World Bank uses a global threshold for upper-middle-income countries, whereas BPS focuses on local requirements. The video also highlights Indonesia's economic inequality and the need for policy reforms to address poverty and improve purchasing power.

Takeaways

• 😀 The World Bank reports that 60.3% of Indonesia's population is living in poverty, which translates to about 171.8 million people in 2024.
• 😀 The discrepancy in poverty data between the World Bank and BPS arises from differing standards used to define poverty.
• 😀 The World Bank uses an international poverty line of $6.85 per capita per day for upper-middle-income countries, which includes Indonesia.
• 😀 The BPS reports a much lower poverty rate of 8.57%, equating to approximately 24 million people living in poverty as of September 2024.
• 😀 The BPS methodology is based on the minimum expenditure required to meet basic needs, including food and non-food essentials.
• 😀 While the World Bank's approach is based on global standards, the BPS approach takes into account local consumption habits and needs in Indonesia.
• 😀 Indonesia's status as an upper-middle-income country places its poverty line in the upper-middle-income bracket, leading to a higher percentage of people considered poor by the World Bank's standards.
• 😀 The poverty lines used by the World Bank for international comparisons are based on purchasing power parity (PPP), which differs from Indonesia's domestic poverty line.
• 😀 Despite a lower poverty rate according to BPS, issues of income inequality and reduced purchasing power are widening the economic gap in Indonesia.
• 😀 When compared to ASEAN countries, Indonesia has one of the highest poverty rates, only lower than Laos and the Philippines.
• 😀 In comparison with global economies like China, Indonesia's poverty rate is still significantly higher, with China’s rate around 11.9%.

Q & A

Why did the World Bank report such a high poverty rate for Indonesia in 2024?

The World Bank's report states that 60.3% of Indonesia's population, or 171.8 million people, will be living in poverty in 2024. This figure is based on a global poverty threshold of $6.85 per capita per day, which is used for upper-middle-income countries. This methodology contrasts with local poverty assessments and considers a broader international standard.

What is the key difference between the poverty calculations of the World Bank and Indonesia's Central Bureau of Statistics (BPS)?

The World Bank uses a global standard based on purchasing power parity (PPP), setting the poverty line at $6.85 per capita per day for upper-middle-income countries. In contrast, BPS calculates poverty based on local needs, using an expenditure model to measure what is necessary to meet basic food and non-food needs in Indonesia.

How does the BPS define the poverty line in Indonesia?

The BPS defines the poverty line based on the minimum expenditure required to meet basic needs, including food and non-food items. The poverty threshold is calculated from the National Socio-Economic Survey (Susenas), which tracks data on household expenditure and consumption.

What is the significance of Indonesia's entry into the upper-middle-income country category in the World Bank's poverty calculations?

Since Indonesia entered the upper-middle-income country category in 2023, the World Bank now applies a poverty threshold of $6.85 per capita per day to measure poverty. This results in a higher poverty rate compared to Indonesia's local standards, as Indonesia's national income is near the lower end of the upper-middle-income category.

What is the main reason behind the discrepancy in poverty rates reported by the World Bank and BPS?

The discrepancy arises from the differing methods used to define poverty. The World Bank applies a standardized international poverty line based on global averages, while BPS uses a locally defined poverty line based on the actual minimum needs of the Indonesian population, considering regional variations.

What are the three approaches used by the World Bank to measure poverty globally?

The World Bank uses three approaches to measure poverty: the international poverty line of $2.15 per capita per day for extreme poverty, $3.65 for lower-middle-income countries, and $6.85 for upper-middle-income countries like Indonesia.

How does Indonesia compare to other ASEAN countries in terms of poverty rates?

Indonesia's poverty rate is the second-highest in ASEAN, with 60.3% of the population in poverty according to the World Bank. Only Laos has a higher rate at 68.9%. Other countries like the Philippines (50.6%) and Malaysia (1.3%) report lower poverty rates.

How does the World Bank's approach to measuring poverty affect the reported figures for Indonesia?

The World Bank's approach, using a global standard of $6.85 per day for upper-middle-income countries, results in a much higher poverty rate for Indonesia. This approach emphasizes international comparisons rather than specific national or local standards of living, which can lead to discrepancies with national reports like those from BPS.

What are the challenges of using the World Bank's global poverty line in Indonesia?

Using the World Bank's global poverty line poses challenges in Indonesia because it does not account for local economic conditions, consumption patterns, or the actual cost of living. The standard of $6.85 per day may not reflect the real poverty line for Indonesians, which is based on local needs and expenditure data.

What implications do the differences in poverty measurements have for Indonesia's economic policy?

The differences in poverty measurements suggest that Indonesia’s policies must address both international poverty standards and local needs. While the World Bank's figures show a high poverty rate, the BPS's figures reflect local realities, highlighting the need for policies that both reduce poverty and improve the purchasing power of Indonesian citizens, particularly the working class and micro-entrepreneurs.