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Lookup NU author(s): Dr Peter Edward
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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.
Author(s): Sumner A, Edward P
Publication type: Article
Publication status: Published
Journal: Bulletin of Indonesian Economic Studies
Print publication date: 01/05/2014
Online publication date: 30/07/2014
ISSN (print): 0007-4918
ISSN (electronic): 1472-7234
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