TEMPO.CO, Jakarta - Statistics Indonesia (BPS) reported that urban areas are seeing increased poverty rates, while rural areas are logging the opposite. Urban poverty rates have risen to 6.73 percent in March 2025, with 11.27 million people, from 6.66 percent in September 2024. Meanwhile, poverty in rural areas slipped from 11.34 percent, or around 13.01 million people in September 2024, to 11.03 percent, or around 12.58 million people in March 2025.
The data was derived from the March 2025 National Socio-Economic Survey carried out in February 2025, involving 345,000 households spread across 38 provinces and 514 districts/cities.
BPS Deputy for Social Statistics Ateng Hartono said several factors influence the rise in urban poverty, with the first being the surge in underemployment in urban areas. Underemployed individuals are those who work less than 35 hours and are still seeking employment.
"The number of underemployed individuals in urban areas in February 2025 grew by 0.46 million people compared to August 2024," Ateng said in a press conference at the BPS Office on Friday, July 25, 2025.
The second factor is the rise in food commodity prices, such as cooking oil, bird's eye chili, and garlic. According to Ateng, the majority of city dwellers rely on market prices because they do not produce their own food. A surge in prices ultimately affects the purchasing power of the population, especially the poor and vulnerable groups.
Ateng also attributes the rise in the open unemployment rate for male workers in urban areas. The open unemployment rate in February 2025 slipped to 4.76 percent from the previous 4.91 percent in August 2024. However, upon further investigation, the open unemployment rate for men increased, while that for women decreased.
"Upon further investigation, the increase in the open unemployment rate for men occurred in urban areas," Ateng said.
BPS recorded an increase in the open unemployment rate for men from 5.87 percent in August 2024 to 6.06 percent in February 2025. Meanwhile, Ateng stated that a large number of men play a key role in the economy. Therefore, this affects urban poverty.
Editor’s Choice: 23.85 Million Indonesians Living Below Poverty Line, BPS Reveals
Click here to get the latest news updates from Tempo on Google News
Indonesia's Extreme Poverty Rate Falls to 0.85% in March 2025, Claims BPS
3 jam lalu
Indonesia's extreme poverty calculation adheres to the World Bank's 2017 standard, rather than the new one.
23.85 Million Indonesians Living Below Poverty Line, BPS Reveals
5 jam lalu
Indonesia's Central Statistics Agency (BPS) announced that the national poverty rate in March 2025 stood at 8.47 percent.
Indonesian Gov't, House Set 2026 Extreme Poverty Target at 0-0.5 Percent
2 hari lalu
The DPR and government set a 2026 target to cut extreme poverty to 0-0.5 percent, down from the earlier zero percent goal.
BPS to Release Indonesia's Latest Poverty Data This Friday
2 hari lalu
Head of BPS Amalia Adininggar Widyasanti stated that she will release Indonesia's poverty data on Friday, July 25, 2025.
Indonesia Unemployment: Al Jazeera's Findings vs. Prabowo's Claims
3 hari lalu
An Al Jazeera report sheds light on the unemployment issue in Indonesia. However, President Prabowo Subianto claims that the unemployment rate has decreased.
Prabowo Urges AG, Police to Crack Down on Rice Adulteration
4 hari lalu
Prabowo Subianto criticized deceptive rice adulteration practices by entrepreneurs, calling them serious violations behind rising rice prices.
Prabowo Counters 'Dark Indonesia' Narrative, Citing Poverty and Unemployment Rates Decline
4 hari lalu
President Prabowo Subianto claimed that Indonesia's national development is currently on the right track.
Cuban Minister Resigns After Claiming Beggars Are Faking It
8 hari lalu
Cuban Minister of Labor and Social Security resigns after criticizing the profession of begging.
BI Survey Shows Indonesians Losing Confidence in Job Opportunities
13 hari lalu
Bank Indonesia's latest survey shows the Job Availability Index (IKLK) fell below 100 in June 2025, continuing its downward trend from May.
Bachelor's Graduates Apply for Jakarta Sanitation Officer Roles as Market Tightens
15 hari lalu
An increasing number of college graduates are applying for newly opened positions in Jakarta's Public Facility and Infrastructure Maintenance program.
