Jakarta. Approximately 23.85 million Indonesians still live in poverty as of March 2025, according to the Central Statistics Agency (BPS), although data showed that the country’s poor population had shrunk to a record low in two decades.

BPS classifies anyone who spends less than Rp 609,160 (approximately $37.29) a month as part of the country’s poor population. Around 23.85 million Indonesians fall within this category, although jobs have gotten more people out of poverty. The poverty headcount has also fallen by 210,000 people from September 2024 figures.

“People living in poverty represent 8.47 percent of our total population as of March. Our national poverty rate has dropped compared to the 8.57 percent recorded last September,” Ateng Hartono, a deputy at BPS, told a news conference in Jakarta on Friday.

“Our poverty rate in 2025 is actually the lowest in two decades. But please do note that we are judging by the numbers,” Ateng said. 

The archipelagic Indonesia still sees a stark inequality between those living in the cities versus its rural areas. The poverty rate in urban areas stands at 6.73 percent, while the poor represent about 11.03 percent of Indonesian villagers. However, the urban poverty rate was higher by 0.07 percentage points compared to September 2024. On the other hand, the rural poverty rate dropped by 0.31 percentage points over the same period.

BPS cited declining unemployment and relatively positive economic growth among the reasons why fewer people were now living in poverty. Indonesia’s open unemployment rate has been on a decline since February 2023, reaching 4.76 percent as of this year. Indonesia’s economy expanded at 4.87 percent year-on-year in the first quarter of 2025. Farmers are also earning more from their harvests as the farmer exchange value (NTP) reaches 123.45 points as of February. An index beyond 100 points means a surplus for the farmers.

Senior minister Airlangga Hartarto said the shrinking poor population should provide a momentum for Indonesia to attract more investments. This way, Indonesia can generate more jobs to defeat poverty.

“As our poverty rate declines, we do hope that the government and economic policies can continue. We will continue to push for investments that can create jobs,” Airlangga told reporters later that day.

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