By: Eka Kurniawan)*
The discrepancy between poverty figures released by the Central Statistics Agency (BPS) and the World Bank has recently raised questions among the public. Some were shocked when the World Bank report stated that the number of poor people in Indonesia had soared to 194.6 million. This figure differs significantly from official BPS data, which recorded a national poverty rate of 23.85 million as of March 2025, equivalent to 8.47 percent of the total population.
However, it’s important to understand that the two figures are not directly comparable. The striking difference is not due to calculation errors, but rather to the use of different benchmarks and methodologies. In the context of statistics and public policy, the methodology used is key to interpreting the data.
The World Bank uses the latest global poverty line standard based on Purchasing Power Parities (PPP) 2021, which defines extreme poverty at spending below US$3 per capita per day. This standard was used in the June 2025 Update to the Poverty and Inequality Platform (PIP) report , which refers to 2021 PPP data released by the International Comparison Program in May 2024. With this change, the global poverty line has undergone a comprehensive adjustment.
Meanwhile, BPS consistently uses the 2017 PPP, in accordance with the framework of the 2025–2029 National Medium-Term Development Plan (RPJMN). BPS Deputy for Social Statistics, Ateng Hartono, explained that BPS continues to use this reference to maintain the continuity of measurement, monitoring, and evaluation of national development programs. He emphasized that BPS’s poverty calculations are inseparable from its commitment to a specific domestic context relevant to the conditions of Indonesian society.
Ateng also emphasized that both BPS and the World Bank actually use the same data source, the National Socioeconomic Survey (Susenas). However, the difference lies in the poverty line used as a benchmark. While the World Bank chooses a global comparison standard, BPS uses a national standard that better aligns with domestic policy needs. This explains the vastly different figures produced, despite being derived from the same database.
This BPS explanation provides important insight: the discrepancy in the figures does not indicate error or manipulation. Rather, it demonstrates that the national statistical agency operates on a clear, consistent, and accountable methodological basis. The use of the 2017 PPP, which sets the extreme poverty line at US$2.15 per capita per day, allows BPS to conduct ongoing program evaluations while remaining aligned with the government’s development plans.
The government also welcomed the BPS report, which showed a declining trend in extreme poverty. Prasetyo, Minister of State Secretary, stated that the decline in poverty rates was encouraging news. However, he also cautioned that this achievement should not make the government complacent. He emphasized that poverty alleviation efforts require cross-sectoral collaboration and the participation of all elements of the nation.
Deputy Speaker of the Indonesian House of Representatives, Sufmi Dasco Ahmad, also expressed his appreciation for the government’s performance in reducing poverty. He stated that this is one of the primary goals of President Prabowo Subianto’s administration. Dasco even stated that his office will request that the Statistics Indonesia (BPS) provide a detailed explanation to the House so that all members of parliament understand the context and methodology used in calculating the poverty data.
Furthermore, Statistics Indonesia (BPS) data shows that the number of people living in extreme poverty in March 2025 was recorded at 2.38 million, equivalent to 0.85 percent of the population. This is the result of various social, economic, and community empowerment intervention programs that have been continuously optimized. This achievement deserves appreciation as the result of measurable hard work based on credible indicators.
BPS has also adopted several technical updates to its spatial deflator calculation method, including adjustments to economic values between regions. While still using the 2017 PPP, BPS continues to refine the resulting data to ensure it remains relevant to price and consumption dynamics across regions.
The public needs to be educated that statistics are a policy tool, not just numbers. In this regard, the role of Statistics Indonesia (BPS), the official national data provider, is crucial for keeping development on track. BPS’s consistent adherence to the National Medium-Term Development Plan (RPJMN) demonstrates its commitment to data-driven development and evidence-based policy.
As a large country with complex social challenges, Indonesia requires a robust, independent, and reliable statistical system. BPS has demonstrated this capacity through professionalism and transparency. The differences with World Bank data are not a matter of accuracy, but rather a matter of perspective and purpose behind each calculation.
By fully understanding these differences, we can avoid hasty or even misleading conclusions. The government, parliament, and the public can continue to work together to ensure data is used wisely, proportionally, and contextually for the advancement of the nation.
)* The author is a public policy observer