Jakarta – The Central Statistics Agency (BPS) has emphasized that Indonesia’s national poverty data is compiled using a more detailed and contextual approach, not simply relying on global averages. This was emphasized due to differences in methodology between national calculations and international comparisons used by global institutions like the World Bank.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that each country has its own basis for calculating poverty, based on local economic and social conditions. However, he emphasized the importance of considering Purchasing Power Parities (PPP) when measuring poverty globally.
“Indonesia’s poverty figures are based on statistical data from the Central Statistics Agency (BPS). Each country defines poverty differently, and PPP is a crucial element in ensuring international comparability of the data,” said Airlangga.
Responding to this, the Deputy for Social Statistics at the Statistics Indonesia (BPS), Ateng Hartono, stated that Indonesia is currently still using the 2017 PPP, which aligns with the policy direction of the 2025–2029 National Medium-Term Development Plan (RPJMN). He added that BPS has updated its method for calculating economic value with a spatial deflator aligned with the World Bank’s methodology for the 2017 PPP.
“Our PPP is still using the 2017 version because we want to maintain continuity of evaluation within the RPJMN framework. However, we have adjusted the method, particularly regarding spatial adjustments between regions,” Ateng explained.
According to Ateng, the main difference between the BPS and World Bank methods lies in the calculation basis. BPS uses national standards relevant to the socio-economic conditions of Indonesian society, while the World Bank uses a global approach that emphasizes cross-country comparisons.
“Therefore, we cannot simply equate spending in the National Socioeconomic Survey (Susenas) with global standards. The PPP plays a role in harmonizing this data,” he added.
BPS guaranteed continued integration with international methodologies, particularly to support extreme poverty calculations. Ateng emphasized that when calculations for global indicators are required, BPS will remain compliant with international standards.
“We maintain the quality of the calculations to keep them in line with international approaches, particularly for global goals such as eradicating extreme poverty,” he said.
Meanwhile, Nurma Midayanti, Director of Social Resilience Statistics at the Statistics Indonesia (BPS), added that BPS is now using a spatial deflator approach to capture differences in the prices of goods and services between regions, even down to the district/city level. She believes this approach represents a significant improvement in measuring extreme poverty in Indonesia.
“This spatial deflator is important because it reflects price variations across regions. This is the first time BPS has released this for calculating extreme poverty,” explained Nurma.
He also stated that BPS had consulted extensively with the World Bank to ensure the calculations were carried out accurately. Several components required special adjustments to ensure the results were valid and comparable to international standards.
With this more accurate and contextual method, BPS affirms its commitment to presenting national poverty data that is credible, relevant, and aligned with global standards without compromising local characteristics. This approach is key to developing targeted poverty alleviation policies across Indonesia.
