BPS Records Decline in Poverty, but Inequality Rises

The national poverty rate in Indonesia fell to 8.07 per cent in March 2026, according to the latest data from the Central Statistics Agency (BPS). The number of people living in poverty declined to 22.93 million, down from 23.36 million recorded in September 2025. Deputy for Balance Sheet and Statistical Analysis M Edy Mahmud stated that the national poverty line stood at Rp 669,235 per capita per month in March 2026, an increase of 4.33 per cent compared to September 2025. He noted that this figure must be contextualised at the household level, as expenses such as rent, electricity, and rice consumption are typically shared. With an average poor household comprising 4.62 members, the national household poverty line reached Rp 3,091,866, varying by province due to differences in price levels, consumption patterns, and household size. By region, rural poverty remained higher at 10.67 per cent compared to 6.34 per cent in urban areas, though both recorded declines from the previous period. However, the Poverty Depth Index (P1) and Poverty Severity Index (P2) revealed a divergence: while urban areas saw improvements, rural areas experienced a worsening gap in expenditure among the poor. Spatially, the sharpest decline in poverty occurred in Java, yet the island still concentrated 12.02 million poor people, representing 52.42 per cent of the national total. Kalimantan recorded the smallest number of poor residents, at 870,000 people or 3.79 per cent of the total.