Government Targets Poverty Reduction to 6–6.5% by 2027

The government and the House of Representatives (DPR) have agreed on the points of the Macroeconomic Framework and Fiscal Policy Principles (KEM PPKF) for the 2027 fiscal year. The poverty rate next year is targeted to fall to a range of 6–6.5%. Chairman of Commission XI of the DPR, Mukhamad Misbakhun, stated that the government and parliament agreed on the complete eradication of extreme poverty by 2027. “The poverty rate in percentage terms is 6.0 to 6.5, then the extreme poverty rate is zero,” Misbakhun said while reading out the KEM PPKF agreement at the DPR building in Jakarta on Thursday, 11 June 2026.

The poverty reduction target for 2027 is lower than this year’s target, which is in the range of 6.5–7.5%. Meanwhile, extreme poverty has been targeted to reach zero per cent in 2026. The latest data from Statistics Indonesia (BPS) shows that the percentage of the poor population in September 2025 was still at 8.25%. In total, the number of poor people in that period was 23.36 million, a decrease of around 700,000 compared to September 2024. The extreme poverty rate stood at 0.78% in September 2025.

Over the past decade, since 2015, the poverty rate in Indonesia has been on a downward trend. In 2015, the percentage of the poor population was around 11%, then fell to 9%, briefly returned to 10% in 2020 and 2021, and has now dropped to the 8% level. BPS data also shows that the urban poverty rate in September 2025 rose from 6.73% to 6.60%, while the rural poverty rate fell from 11.03% to 10.72%. The highest percentage of poor people is in the Maluku and Papua region, at 18.22%, while the lowest is in Kalimantan, at 5.02%. However, in terms of absolute numbers, the majority of the poor population still resides in Java, totalling 12.32 million people.