After 81 years of independence, development success is still often\nmeasured by how many people manage to escape poverty.<\/p>\n
The latest data show that this achievement continues to improve. In\nMarch 2026, Statistics Indonesia (BPS) recorded a poverty rate of 8.07\npercent (22.93 million people), down 0.18 percentage points, or around\n430,000 people, compared with September 2025.<\/p>\n
Not only that, the Poverty Depth Index (P1) also fell from 1.290 to\n1.268, while the Poverty Severity Index (P2) declined from 0.303 to\n0.291. Statistically, these changes indicate that the average\nexpenditure of the poor is drawing closer to the poverty line and that\nexpenditure inequality among the poor is also improving.<\/p>\n
This achievement deserves appreciation. However, the issue is no\nlonger simply how to lift households out of poverty, but how to ensure\nthat such improvements can be sustained and become a foundation for a\nhigher level of welfare.<\/p>\n
The poverty line is one important reference point in understanding\nthis issue. In March 2026, the national poverty line was recorded at\nRp669,235 per capita per month, an increase of 4.33 percent compared\nwith September 2025. The composition of this poverty line is still\ndominated by food needs, which account for 74.70 percent. This shows\nthat the resources of low-expenditure households are still largely\nabsorbed by basic needs. The room to save, acquire assets, finance\neducation, or make investments therefore remains limited.<\/p>\n
This condition matters because improvements in welfare are not\ndetermined solely by the size of income or expenditure at a single point\nin time. Equally important is the ability of households to convert\nadditional resources into economic capital for the future.<\/p>\n
When most income is spent on basic needs, an increase in income does\nnot necessarily improve a household\u2019s economic capacity immediately.\nMost of it is used merely to maintain consumption at a better level,\nwhile the ability to build savings and assets remains limited.<\/p>\n
Households whose expenditure lies slightly above the poverty line are\nindeed no longer classified as poor statistically, but that position\ndoes not necessarily reflect strong economic capacity.<\/p>\n
With limited reserves, job loss, rising staple food prices, health\ncosts, or education needs can undermine a household\u2019s ability to\nmaintain consumption. Therefore, poverty reduction needs to be\naccompanied by strengthened economic resilience so that the improvement\ncan endure.<\/p>\n
This is where it becomes important to distinguish between a change in\npoverty status and a change in economic capacity. A change in status can\noccur when household expenditure crosses a certain threshold, whereas an\nincrease in economic capacity requires a longer process.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/poverty-and-the-challenge-of-economic-mobility-1788144793", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }