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Assessing Poverty Trends in Indonesia by International Poverty Lines

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  • Andy Sumner
  • Peter Edward

Abstract

Indonesia has made well-documented and drastic progress in raising average incomes and reducing poverty. This article adds to the literature by providing a complementary perspective of poverty between 1984 and 2011. We discuss the evolution of poverty in Indonesia using international poverty lines-$1.25 per person per day (in 2005 purchasing power parity dollars) and $2.00 per day, and we add $10.00 per day. We generate estimates of poverty since 1984 and make projections based on various trends in growth and inequality. We find that Indonesia has the potential to become a high-income country by around 2025 and end $1.25-per-day and $2.00-perday poverty by 2030, but this will require strong economic growth and favourable changes in distribution. Looking ahead, the end of poverty in Indonesia may mean that a large proportion of the population will remain vulnerable to poverty for some time to come, suggesting that public policy priorities will need to balance insurance and risk-management mechanisms with more 'traditional' poverty policy.

Suggested Citation

  • Andy Sumner & Peter Edward, 2014. "Assessing Poverty Trends in Indonesia by International Poverty Lines," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(2), pages 207-225, August.
    • Handle: RePEc:taf:bindes:v:50:y:2014:i:2:p:207-225
    DOI: 10.1080/00074918.2014.938404
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    Cited by:

    1. Arief Anshory Yusuf & Andy Sumner & Irlan Adiyatma Rum, 2014. "Twenty Years of Expenditure Inequality in Indonesia, 1993-2013," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(2), pages 243-254, August.
    2. Jan Priebe, 2014. "Official Poverty Measurement in Indonesia since 1984: A Methodological Review," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 50(2), pages 185-205, August.
    3. Hal Hill, 2018. "Asia's Third Giant: A Survey of the Indonesian Economy," The Economic Record, The Economic Society of Australia, vol. 94(307), pages 469-499, December.
    4. Hal Hill, 2020. "Indonesian Living Standards over 50 Years: A Multidimensional Analysis," Asian Economic Journal, East Asian Economic Association, vol. 34(3), pages 249-274, September.
    5. Neil French Collier & Jeffrey Sayer & Agni Klintuni Boedhihartono & Jan Hanspach & Dave Abson & Joern Fischer, 2018. "System Properties Determine Food Security and Biodiversity Outcomes at Landscape Scale: A Case Study from West Flores, Indonesia," Land, MDPI, vol. 7(1), pages 1-19, March.
    6. John Paolo Rosales Rivera, 2022. "A nonparametric approach to understanding poverty in the Philippines: Evidence from the Family Income and Expenditure Survey," Poverty & Public Policy, John Wiley & Sons, vol. 14(3), pages 242-267, September.

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