TEMPO.CO, Jakarta - The World Bank has raised the international poverty line from US$2.15 per capita daily to US$3.00. This change caused the number of people living in extreme poverty in Indonesia to increase to 15.42 million in 2024, accounting for about 5.5 percent of the population. Meanwhile, if using the old poverty line, the number of Indonesians living below the extreme poverty line is as many as 3.56 million or about 1.26 percent.
The poverty line for lower-middle-income countries has also been revised from US$3.65 to US$4.20. The same goes for the poverty line for upper-middle-income countries, which has changed from US$6.85 to US$8.30.
Since 2023, Indonesia has been categorized as an upper-middle-income country. When measured using PPP US$8.30, the poverty rate in Indonesia in 2024 reached 68.25 percent, or about 193.49 million people. Meanwhile, if using the old poverty line, the poverty rate reached 171.8 million people, or about 60.3 percent.
This change occurred after the World Bank adopted the 2021 purchasing power parity (PPP). Previously, the World Bank used PPP 2017. PPP is a conversion method that adjusts the purchasing power between countries. Additionally, this change is caused by an increase in the poverty line in low-income countries, particularly in West Africa.
According to World Bank data, 16 of 23 low-income countries have raised their national poverty lines. "As a result, the value of the international poverty line has increased by about 40 percent," wrote the World Bank in a research document published on June 5, 2025.
National Economic Council member Arief Yusuf Anshory said that the change in the international poverty line shows that revising a country's national poverty line is natural. As countries become more prosperous, consumption patterns also change. "Indonesia hasn't changed (its poverty line) in 26 years," he told Tempo over the phone on Sunday, June 8, 2025.
The Padjadjaran University economist also said that the change in the World Bank's poverty line makes Indonesia's poverty line closer to the extreme poverty line. Indonesia's poverty line is Rp595,242 per person per month. Meanwhile, the latest international poverty line based on PPP 2021 is around Rp545,000 per person monthly.
"This means that our standard poverty line is very close to the median poverty line adopted by the poorest countries worldwide," said Arief. He also believes that the World Bank's changes to its poverty line should prompt Indonesia to promptly update its own.
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