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Agricultural Surplus Labor and Poverty in Indonesia

In: Lewisian Turning Point in the Chinese Economy

Author

Listed:
  • Susumu Hondai
  • Kazutoshi Nakamura

Abstract

Indonesia has done remarkably well in the areas of both economic growth and poverty reduction through deregulating economic control policies especially since the latter half of the 1980s. The economy grew at around 8 percent annually from 1990 to 1997 and a large amount of labor force had migrated from rural to urban areas. As a result, the population below the poverty line went down from 40 percent in 1976 to 27 percent in 1984, 18 percent in 1996, and 16 percent in 2005. Although the population below the poverty line has declined significantly, there are still about 35 million people below the line and two-thirds of them are living in rural areas. Because it amounts to 18.9 percent of the rural population, poverty is one of the biggest problems in rural areas.

Suggested Citation

  • Susumu Hondai & Kazutoshi Nakamura, 2014. "Agricultural Surplus Labor and Poverty in Indonesia," Palgrave Macmillan Books, in: Ryoshin Minami & Fumio Makino & Kwan S. Kim (ed.), Lewisian Turning Point in the Chinese Economy, chapter 4, pages 58-75, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-39726-3_4
    DOI: 10.1057/9781137397263_4
    as

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