Indonesia uses decile system to measure household welfare

The Indonesian government utilizes a decile system within the National Social and Economic Single Data (DTSEN) to measure household welfare and determine eligibility for social assistance programs. Families are divided into ten groups, with deciles 1 through 4 representing the lowest 40 percent of the population. These groups are primary targets for programs such as the Family Hope Program (PKH) and the Sembako Program, while decile 5 may qualify for health insurance subsidies (PBI-JK).

Statistics Indonesia (BPS) clarifies that deciles represent a relative ranking of welfare rather than an absolute measure of wealth or poverty. According to BPS Head Amalia Adininggar Widyasanti, a family's position reflects its socio-economic standing compared to others based on various characteristics. The assessment uses the Proxy Means Test (PMT) method, considering factors beyond income, including housing conditions, water sources, cooking fuel, electricity consumption, asset ownership, education, employment, and disability status.

Citizens can verify their family's decile status through the Ministry of Social Affairs' official website, cekbansos.kemensos.go.id, by providing their National Identity Number (NIK).