Traffic Accidents Could Increase Poverty

JAKARTA, KOMPAS.com - Accidents do not only harm oneself or others, but also the family. This means accidents can directly impact the family economy. Rio Octaviano, Chairman of the Supervisory Board of the Road Safety Association (RSA) Indonesia, stated that in this situation, a single accident can disrupt the family’s economic stability. “When the victim is the family’s breadwinner, minor injuries can cause income loss of around Rp 1 million. Severe injuries can eliminate income up to Rp 8–11 million. In cases where the victim dies, the family could lose around Rp 40 million in the first year due to the severance of the source of livelihood,” Rio said in an official statement on Wednesday (25/3/2026). It is estimated that around 37,000 to 66,000 people could be pushed into poverty every year due to traffic accidents, and in a broader scenario, it could approach 140,000 people. Although, Rio noted, this estimate is an approach based on socio-economic analysis and not official statistical figures. Therefore, Rio said, the government needs to be encouraged to significantly increase budget allocations for handling road safety. “RSA assesses that investment in road safety is a strategic step that can suppress fatality rates while reducing the state’s economic burden,” he said.