JAKARTA, KalderaNews.com – Indonesia can build on its impressive track-record of poverty reduction to tackle more ambitious poverty reduction targets. The country has made impressive gains in reducing poverty, with previously lagging regions catching up, essentially reaching the Government’s goal to eliminate extreme poverty by 2024.
With a sustained economic growth and social protection, Indonesia has lowered extreme poverty from 19 percent in 2002 to 1.5 percent in 2022, reveals the Indonesia Poverty Assessment: Pathways Towards Economic Security released today. Indonesia can now continue focusing its efforts to improve the lives of a larger part of the population, including economically insecure households by creating better opportunities and protecting Indonesians from staying in and falling into poverty.
Furthermore, despite a substantial increase from 2002 until 2010, inequality experienced a stagnation and had dropped from 2014 to 2019. Fiscal policies contributed to the reduction of poverty and inequality by around three points of the Gini coefficient – a measure used to indicate income inequality. However, pro-poor investments have been limited due to low government revenue collection and costly subsidies.
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