BPS Explains Discrepancy Between Indonesia's Poverty Line and World Bank Figures

The Indonesian Central Statistics Agency (BPS) has provided an explanation regarding the discrepancy between Indonesia’s poverty line figures released by the World Bank and the data published by BPS.

In an official statement in Jakarta on Wednesday, BPS Deputy for Social Statistics, M. Nashrul Wajdi, stated that the figures provided by the World Bank are not calculated based on Indonesia’s national poverty line. In its latest release, the World Bank reported that 64.2 per cent of the Indonesian population lives below the poverty line. This figure, sourced from the April 2026 Macro Poverty Outlook, is a projection for 2026 using a poverty line of 8.30 US dollars per capita per day based on 2021 Purchasing Power Parity (PPP).

In contrast, BPS recorded the percentage of Indonesia’s poor population at 8.07 per cent as of March 2026, representing approximately 22.93 million people. He emphasised that these two figures cannot be directly compared, as they are constructed using different poverty standards and serve different purposes.

“The 64.2 per cent figure is an estimate of the Indonesian population whose expenditure falls below 8.30 US dollars per capita per day according to the World Bank. This poverty line is calculated based on standards set by the World Bank, not the national poverty line used in Indonesia. The value is set based on the poverty standard commonly used for upper-middle-income countries and is primarily used to compare conditions between nations,” said Nashrul.

He explained that the World Bank employs several international poverty lines to compare welfare conditions across countries. In its latest update, the World Bank uses a 3 US dollar per capita per day line to measure extreme poverty, 4.20 US dollars for lower-middle-income countries, and 8.30 US dollars for upper-middle-income countries (UMIC).

Furthermore, the 8.30 US dollar figure is not calculated using the prevailing Rupiah to US dollar exchange rate in the market, but rather uses PPP, which accounts for differences in purchasing power between countries. BPS noted that the 64.2 per cent figure, using the 8.30 US dollar PPP 2021 standard, is based on the median poverty line for upper-middle-income countries, rather than the specific basic needs of the Indonesian people. By applying this global standard, the number of poor people in Indonesia appears significantly higher.

Indeed, the World Bank stated on its official website on 13 June 2025 that the national poverty line and poverty statistics published by BPS are more appropriate for use in domestic decision-making and policy within Indonesia. Furthermore, BPS measures Indonesian poverty using the Cost of Basic Needs (CBN) approach. This measurement is based on the minimum expenditure required to meet basic food and non-food needs.

The food component refers to a minimum consumption standard of 2,100 kilocalories per person per day based on Indonesian household consumption patterns, while the non-food component covers needs such as housing, education, health, clothing, and transport.

BPS poverty line calculations utilise data from the National Socio-Economic Survey (Susenas), which records public expenditure and consumption patterns. Susenas is conducted twice a year, allowing the BPS poverty line to reflect the real needs of the Indonesian people. As of March 2026, BPS recorded the percentage of Indonesia’s poor population at 8.07 per cent, or 22.93 million people. This figure is calculated based on the national poverty line, which considers varying needs across provinces and regencies/cities, including price levels, consumption patterns, and the average number of members in poor households. On a national average, the household poverty line was recorded at Rp3,091,866 per month.