September 8, 2026 | 12:30 pm
TEMPO.CO, Jakarta - Statistics Indonesia (BPS) has addressed the progress being made on revising the poverty standard. They stated that they are still conducting studies and making in-depth refinements to the methodology for calculating the poverty line.
"The refinement being studied is not just about raising the nominal poverty line, but is an evaluation of the overall method of measurement to be more relevant to the development of consumption patterns and the socio-economic conditions of the Indonesian society," BPS wrote in a written response sent to Tempo on Tuesday, September 8, 2026.
According to BPS, the components being studied include all the determinants of the poverty line, both food and non-food needs.
To address food needs, BPS is studying the base year, reference population, commodity basket, prices, consumption quantities, and energy sufficiency thresholds, among other things. Alternative methodologies under study include using the 2024 base year, increasing the food basket from 52 to 57 commodities, and setting a fixed energy sufficiency threshold of 2,100 kilocalories per capita per day. BPS is also studying how prices are determined, including the use of median prices, to make them more robust against price variations.
As for non-food needs, the study covers adjusting the commodity basket and the method used to calculate them. One option is to use the direct method. Another option is to use the indirect method with a food share and total expenditure approach. The mechanism for updating the poverty line during subsequent periods is also under study, with the aim of reflecting changes in prices and economic conditions.
BPS stated that the formula, parameters, and timing for implementing the new methodology have not been finalized. "Any changes in the future need to consider empirical evidence, statistical principles, data comparability between periods, as well as input from experts and stakeholders," said BPS.
For your information, the current national poverty line is Rp3,091,866 per household per month. According to economist and researcher at the Centre for Strategic and International Studies (CSIS), Deni Friawan, the poverty standards currently used by BPS are too low and need to be improved.
Deni believes that the current poverty standard only measures the minimum living needs, not the standard for a decent living. "So it's not just about measuring the minimum standard of living to survive, but how much is the standard of living decent for the people of Indonesia in their respective regions," he said when contacted on Monday, September 7, 2026.
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