# Indonesia poverty reduction efforts

> Live situation record from CLSTR: https://clstr.news/situations/indonesia-poverty-reduction-efforts
> Updated: 2026-10-18T16:55:00.000Z. Sources: 10. Developments: 2.

Indonesia has reported a downward trend in poverty levels, with the poverty rate falling to 8.07 percent in March 2026. This figure represents a decrease of 920,000 people compared to March 2025. Data from Statistics Indonesia indicates that extreme poverty also declined from 2.14 percent in 2021 to 0.85 percent in 2025, while the Gini ratio improved from 0.384 to 0.375.

To maintain this momentum, the government is implementing initiatives such as the Wage Subsidy Assistance (BSU) program and a national internship program for university graduates. 

Building on these trends, Coordinating Minister for Community Empowerment Muhaimin Iskandar has announced a strategic goal to reduce the national poverty rate to a maximum of 5% by 2029. Under President Prabowo Subianto’s administration, the ministry intends to shift from temporary social assistance toward long-term community empowerment. This three-pillar strategy focuses on reducing household expenditures through social security and infrastructure, strengthening income-generating empowerment programs, and eliminating poverty pockets through targeted programs.

## Claims

- Indonesia's poverty rate fell to 8.07 percent in March 2026. (corroborated by 3 sources)
- The number of people living in poverty is 22.93 million. (corroborated by 3 sources)
- The poverty population decreased by 920,000 people compared to March 2025. (corroborated by 3 sources)
- The poverty rate dropped from 10.14 percent in 2021 to 8.47 percent in 2025. (corroborated by 3 sources)
- Extreme poverty declined from 2.14 percent to 0.85 percent. (corroborated by 3 sources)
- The Gini ratio improved from 0.384 to 0.375. (corroborated by 3 sources)
- The government set a Human Capital Index target of 0.56 for 2025. (corroborated by 3 sources)
- The number of people living in poverty was 22.93 million in March 2026. (corroborated by 3 sources)
- The poverty rate decreased from 10.14 percent in 2021 to 8.47 percent in 2025. (corroborated by 3 sources)
- Extreme poverty declined from 2.14 percent to 0.85 percent between 2021 and 2025. (corroborated by 3 sources)
- The Gini ratio improved from 0.384 to 0.375 over the same period. (corroborated by 3 sources)
- The government set a target score of 0.56 for the Human Capital Index in 2025. (corroborated by 3 sources)

## Timeline

### 2026-10-18: Indonesia poverty rate falls to 8.07 percent in March 2026

Indonesia's poverty rate dropped to 8.07 percent in March 2026, with 22.93 million people living below the poverty line, marking a decrease of 920,000 people from the previous year.

6 sources. https://clstr.news/cluster/indonesia-poverty-rate-falls-to-807-percent-in-march-2026

### 2026-10-14: Muhaimin Iskandar targets 5% poverty rate in Indonesia by 2029

Indonesia aims to reduce its poverty rate from 8.07% to 5% by 2029 through a strategy of community empowerment and social security.

5 sources. https://clstr.news/cluster/muhaimin-iskandar-targets-5-poverty-rate-in-indonesia-by-2029

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Cite as: Indonesia poverty reduction efforts. CLSTR, https://clstr.news/situations/indonesia-poverty-reduction-efforts