Jakarta, CNBC Indonesia - The government\u2019s decision to open access\nfor the public to check their welfare decile means that individuals can\nnow identify their position within various prosperity groups.<\/p>\n
On social media, citizens have even been publishing their deciles\nobtained from the Ministry of Social Affairs\u2019 data portal. Some have\nclaimed that despite earning only the minimum wage (UMR), they are\ncategorised in Decile 10, a group typically reserved for conglomerates\nor high-ranking officials.<\/p>\n
However, deciles are not measured based on individual income alone.\nNumerous elements form this metric, encompassing socio-economic\nvariables, including routine expenditure.<\/p>\n
Turro Wongkaren, Vice Chairman of the Statistical Society Forum,\nstated that in the field of statistics, expenditure data is utilised\nwhen data collectors lack the ability to obtain individual income data\nfrom the public.<\/p>\n
\u201cBecause we do not have income data, we usually use expenditure data.\nIt is as simple as that,\u201d Turpend said when contacted by CNBC Indonesia\non Friday.<\/p>\n
According to Turro, accessing income data in Indonesia is difficult\nbecause not everyone possesses a financial account or works in the\nformal sector, where income is fixed and clearly recorded over a\nspecific period.<\/p>\n
\u201cMany people do not have continuous formal income. You might see many\nordinary people in Jakarta who have accounts, but not everyone does,\u201d\nTurro noted.<\/p>\n
Consequently, decile measurement employs the Proxy Means Test (PMT)\nmethod to estimate family welfare levels based on observable\ncharacteristics. This includes individual details such as occupation and\neducation, housing conditions, electricity capacity, and asset\nownership.<\/p>\n
These variables are then ranked into groups known as Deciles 1-10,\nconsidering various socio-economic characteristics collectively,\nincluding housing conditions, drinking water sources, cooking fuel and\nenergy, asset ownership, electricity consumption, family composition,\neducation, occupation, health, and disability.<\/p>\n
\u201cSo, the proxy means test is essentially a statistical method because\nwe do not have actual income data; to predict your expenditure, decile\nrankings are created based on that expenditure,\u201d he explained.<\/p>\n
Nevertheless, Turro believes that the government should strive to use\nactual income measurements to assess social conditions. While clear data\nfor this is not yet available, he suggested that tax data could be\nutilised.<\/p>\n
\u201cI agree with that; it should be used as shared information,\nincorporating various sources, such as electricity usage and tax data,\u201d\nsaid Turro.<\/p>\n
\u201cThe purpose of tax data is not just to tax a specific value, but\nrather the opposite. We want to know approximately what their income is.\nTherefore, there are various venues to collect this information,\u201d he\nemphasised.<\/p>\n
As is known, the decile is one of the metrics contained within the\nNational Single Socio-Economic Data (DTSEN).<\/p>\n
DTSEN, according to Turro, is the result of integrating datasets\nconsisting of the Integrated Social Welfare Data (DTKS), the Targeting\nof Extreme Poverty Eradication Acceleration (P3KE), and the\nSocio-Economic Registration (Regsosek).<\/p>\n
This data is then enriched with various administrative data and\nperiodically synchronised with population data managed by the\nDirectorate General of Population and Civil Registration (Dirjen\nDukcapil) under the Ministry of Home Affairs.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/minimum-wage-earners-in-decile-10-here-is-the-explanation-1788519330", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }