Indonesia poverty rate falls to 8.07% while inequality rises

Data from Indonesia's Central Bureau of Statistics (BPS) shows that the poverty rate fell to 8.07 percent in March 2026, representing 22.93 million people. This is a decrease from the 8.47 percent recorded in March 2025.

Despite the decline in poverty, economic inequality has risen. The Gini ratio, which measures expenditure inequality, increased to 0.368 in March 2026, up from 0.363 in September 2025. While the current figure is lower than the 0.375 recorded in March 2025, the recent upward trend has drawn criticism.

Prof. Dr. Bagong Suyanto, a sociologist and professor at Universitas Airlangga, noted that the nation's economic growth of 5.29 percent in the second quarter of 2026 has not been fully inclusive. He argued that the distribution of profit margins remains unequal and that those exiting poverty remain vulnerable to layoffs, rising commodity prices, and healthcare costs. Experts suggest that addressing these disparities requires restructuring the power dynamics behind production and distribution to align with the economic principles of Article 33 of the 1945 Constitution.