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Assessing Poverty Trends in Indonesia by International Poverty Lines

Lookup NU author(s): Dr Peter Edward

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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.

Publication metadata

Author(s): Sumner A, Edward P

Publication type: Article

Publication status: Published

Journal: Bulletin of Indonesian Economic Studies

Year: 2014

Volume: 50

Issue: 2

Pages: 207-225

Print publication date: 01/05/2014

Online publication date: 30/07/2014

ISSN (print): 0007-4918

ISSN (electronic): 1472-7234

Publisher: Routledge

URL: http://dx.doi.org/10.1080/00074918.2014.938404

DOI: 10.1080/00074918.2014.938404

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