Discrepancies in Indonesian Poverty Data Between BPS and World Bank: How to Understand Them
There is a significant difference between the number of poor people in Indonesia recorded by the World Bank and the Indonesian Central Bureau of Statistics (BPS). This is triggered by the use of vastly different indicators.
According to the World Bank’s latest data, the proportion of the Indonesian population living below the poverty line is projected to be 64.2%, as stated in the April 2026 edition of the Macro Poverty Outlook. This figure is based on a poverty line of US$8.30 per capita per day using 2021 Purchasing Power Parity (PPP).
In contrast, BPS recorded the Indonesian poverty rate for March 2026 at 8.07%, representing approximately 22.93 million people. This figure is measured based on the national Poverty Line as of March 2026, which assesses the varying basic needs of the Indonesian population across different provinces and regencies/cities. Depending on price levels, consumption patterns, and the average number of household members in each region, the national average household poverty line is Rp3,091,866 per month.
Consequently, BPS has reminded the public that these differences must be approached with wisdom and caution, as both datasets are constructed using different standards and serve different purposes. Therefore, according to BPS, the two figures cannot be directly compared as a single measure of poverty.
Different Calculation Methods and Objectives
M. Nashrul Wajdi, Deputy for Social Statistics at BPS, stated that the figures provided by the World Bank are not calculated based on Indonesia’s national poverty line. He emphasised that the 64.2% figure is an estimate of the Indonesian population whose expenditure falls below US$8.30 per capita per day according to World Bank standards.
This poverty line is calculated based on standards set by the World Bank, rather than the national poverty line used in Indonesia. “The value is set based on poverty standards commonly used in upper-middle-income countries and is primarily used to compare conditions between countries,” said Nashrul.
He continued that the World Bank uses several international poverty lines to compare welfare conditions across nations. In its latest update, the World Bank uses US$3.00 per capita per day to measure extreme poverty, US$4.20 for lower-middle-income countries, and US$8.30 for upper-middle-income countries (UMIC).
Furthermore, it should be noted that the US$8.30 figure is not converted using the current Rupiah to Dollar market exchange rate. The World Bank uses Purchasing Power Parity (PPP), a method that accounts for differences in purchasing power between countries. BPS noted that applying the World Bank’s global standard to Indonesia would result in a significantly higher number of poor people.
“The World Bank itself states that for domestic decision-making and policy in Indonesia, the national poverty line and poverty statistics produced by BPS are more appropriate to use,” BPS stated in its clarification.
Although Indonesia is currently classified as an upper-middle-income country (UMIC) with a Gross National Income (GNI) per capita of US$5,120 in 2025, BPS noted that Indonesia has only recently entered this category and sits just above the lower threshold of the UMIC range, which spans between US$4,636 and US$14,375 (for 2025, released on 1 July 2026).
Therefore, BPS measures poverty in Indonesia using a Cost of Basic Needs (CBN) approach. The minimum amount of Rupiah required to meet these basic needs is expressed as the Poverty Line. This line is calculated based on the minimum expenditure required to meet food and non-food basic needs. The food component is based on a minimum consumption standard of 2,100 kilocalories per person per day, consisting of common commodities such as rice, eggs, tofu, tempeh, cooking oil, and vegetables, according to Indonesian household consumption patterns.
The non-food component includes the minimum requirements for housing, education, health, clothing, and transport. The poverty line is calculated based on data from the National Socio-Economic Survey (Susenas), which collects data on public expenditure and consumption patterns. Susenas is conducted twice a year.
“Therefore, the poverty line calculated by BPS can reflect the real needs of the Indonesian people. The calculation and release of BPS poverty figures are conducted in detail by region, both by province and regency/city, distinguishing between urban and rural areas,” according to BPS.