Indonesian Political, Business & Finance News

North Sumatra's Poverty Rate is the Highest After Java

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Sosial Policy

The poverty rate in North Sumatra Province is currently recorded at 7.24%, equivalent to 1.28 million out of a total population of 15.785 million. This poverty rate is the fourth-highest in Indonesia, after East Java, Central Java, and West Java. Of the 33 regencies and cities, Medan has the largest number of poor people, at 7.25% or 171,600 people.

The Head of the Statistics Division of the North Sumatra Communication and Informatics Office, Ika Hardina Lubis, said that this percentage is lower than the national figure of 8.25%. This poverty figure is based on data from the Central Statistics Agency (BPS) of North Sumatra, which was released in September 2025. BPS releases data every March and September.

“We are ranked 17th lowest, not in the top ten nationally. Hopefully, the March release will show a more significant decrease,” said Ika during a press conference in the lobby of the governor’s office on Thursday, February 26, 2026.

She emphasized that poverty statistics do not fully reflect the overall social conditions of the community. However, this data is used as a basis for formulating policies and programs to address poverty.

The North Sumatra Provincial Government continues to strive to reduce this figure through regional government organizations (OPDs). Various methods are being implemented to alleviate poverty, one of which is through the Social Service through the Productive Community program (Mapro).

Through this program, the community is expected to change their mindset and increase their income, both individually and in groups. Throughout 2025, as many as 1,360 people received assistance for productive businesses, targeting communities in Deciles 1, 2, 3, and 4. The types of assistance provided include equipment for making cakes, haircuts, and sewing.

“The second program is community-based enterprises (Kube). The targets and assistance provided are the same. Recipients are nominated by the regencies and cities with the requirement that they are registered in the DTSEN,” said the Secretary of the Social Service, Fachrizal Nasution.

This year, both programs will continue. It is planned that the assistance provided will be increased, such as agricultural tools, building construction tools, motorcycle repair tools, and salon equipment.

The Coordinating Minister for Community Empowerment, Muhaimin Iskandar, said that collaboration is the key to addressing extreme poverty. He said that poverty must decrease by 0.86% per year so that the target of reducing poverty by 5% by 2029 can be achieved.

“The number of poor people was recorded at 23.85 million in 2025. Meanwhile, the number of people living in extreme poverty in Indonesia reaches 2.38 million,” he said.

The government is addressing poverty by reducing the basic burden on the community through social security and targeted social assistance. It is also increasing income by expanding access and capacity for migrant workers, empowering the workforce, and creating business opportunities.

The next strategy is to reduce pockets of poverty by improving uninhabitable homes, providing basic infrastructure, and empowering communities based on their regions. “Almost all provinces have experienced a decrease in the extreme poverty rate,” said Muhaimin.

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