Jakarta. Indonesia’s urban poverty rate increases, driven by higher male unemployment and rising food prices, according to the Central Statistics Agency (BPS).

Urban poverty rose from 6.66 percent, or around 11.05 million people, in September 2024 to 6.73 percent, equivalent to 11.27 million people, by March 2025, BPS Deputy for Social Statistics Ateng Hartono said during a press conference on Friday.

In contrast, poverty in rural areas declined over the same period, falling from 11.34 percent (13.01 million people) to 11.03 percent (12.58 million people).

Ateng said several factors contributed to the increase in urban poverty, including a rise in underemployment, defined as individuals working less than 35 hours per week while actively seeking additional work.

“The number of underemployed in urban areas increased by 460,000 people in February 2025 compared to August 2024,” Ateng said.

Another contributing factor was the increase in food prices for key commodities such as cooking oil, bird’s eye chili, and garlic. With most urban residents reliant on market prices rather than self-produced food, the rising costs have eroded purchasing power, particularly for the poor and those vulnerable to poverty, Ateng added.

The third factor was a rise in open unemployment rates among urban men. While the overall national open unemployment rate fell slightly from 4.91 percent in August 2024 to 4.76 percent in February 2025, male unemployment in urban areas increased.

BPS data showed the open unemployment rate for men climbed from 5.87 percent in August 2024 to 6.06 percent in February 2025, while the rate for women decreased during the same period.

“We found that the increase in open unemployment among men occurred specifically in urban areas,” Ateng said.

Since many men serve as primary breadwinners in households, the increase in male unemployment has significantly impacted urban poverty levels, he added.

Despite the urban challenges, Indonesia’s overall poverty rate reached its lowest level in two decades. Approximately 23.85 million Indonesians still lived in poverty as of March 2025, down by 210,000 from September 2024.

“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 said.

BPS defines poverty as individuals spending less than Rp 609,160 (approximately $37.29) per month.

The findings were based on the March 2025 National Socioeconomic Survey, conducted in February 2025, which covered 345,000 households across 38 provinces and 514 districts and cities nationwide.

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