[REVISION HISTORY]

Poverty reduction and economic trends in Indonesia

Updated 3 times since CLSTR started tracking revisions of this situation.

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2026-08-23 12:54 UTC → 2026-08-28 05:15 UTC · added ~~removed~~

Reports from mid-2026 confirm a trend of declining poverty rates across several Indonesian provinces, coinciding with broader national economic shifts. Nationally, BPS recorded 22.93 million people living in poverty in March 2026, an 8.07% rate that represents a decrease from the 8.47% recorded in March 2025. While poverty declined, economic inequality has shown signs of rising; the Gini ratio increased to 0.368 in March 2026 from 0.363 in September 2025. Prof. Dr. Bagong Suyanto, a sociologist at Universitas Airlangga, noted that the nation’s 5.29% economic growth in the second quarter of 2026 has not been fully inclusive, arguing that profit distribution remains unequal and those exiting poverty remain vulnerable to layoffs and rising costs. On the island of Java, the poverty rate declined from 7.81% in September 2025 to 7.60% in March 2026, marking the largest reduction among Indonesia's major islands. In West Java, the poverty rate fell to 6.54% in March 2026, ~~reducing the number of impoverished individuals by 114,230. However,~~ though the province saw a rise in its Gini ratio to ~~0.413, suggesting widening inequality. In rural areas, rice and kretek filter cigarettes were identified as main commodities driving poverty.~~ 0.413. To assist government planning, West Java has utilized the National Socio-Economic Single Data (DTSEN) decile system; Bogor Regency recorded the highest concentration of individuals in Decile 1, with 396,680 people. Central Java also reported a continuous decline in poverty, reaching 9.21% (3.29 million people) in March 2026. The province recorded cumulative economic growth of 5.80% for the first semester of 2026, outperforming the national average and accounting for 14.50% of the economy on Java Island. Additionally, Central Java remains a vital food granary; following a 2025 production of 9.39 million tons of dry milled grain, the province set a 2026 target of approximately 10.56 million tons, reaching 6.74 million tons as of July 2026.

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