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Economy

Poverty in Indonesia – Rate and Analysis

Review by : Yuli SE., MM

Poverty is a situation which there are a lack of income for fulfill main needs for living. Then, poverty also a condition when life reach the lowest level of circumstances. As well as life in a state where the human life in deprivation. On the other hand, poverty often considered in simple meaning. Such as lack of money, low levels of income and non-fulfillment of the basic needs of everyday life. However, in fact, poverty is a complex issue, both from a factor and its impacts.

Meanwhile, poverty becomes a main focus in several countries. Poverty leads many situations occurred such as problems, the occurrence of crime, distortion. As well as encourage the occurrence of damage, unemployment and so on. There are almost no country is free from poverty problems even developed country. Indeed, poverty is common problem and main disadvantage. It already widespread markedly since the rise of industry and use of industrial tools.

The Increasing Number of Poverty in Indonesia

In Indonesia, poverty seems to be a terrible scourge and undermine local economy continuously. Then, it should be a reflection for Indonesian government to continue a hard work for attempt the overcome poverty problems. Meanwhile, there are already various attempts by government to solve it. However, the problems of poverty still uncontrolled. On the other hand, there are institute which recorded the number of poor people namely BPS (The Central Statistic Agency). BPS said that poverty is not just about the number and percentage of poor people, but also about the depth and severity of poverty.

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Indicator of Poverty

Indicator of poverty according to BPS such as:

[table]

[tr][th]NO[/th] [th]Rules[/th][/tr]

[tr][td]1[/td] [td]The inability to fulfil basic consumption needs [/td][/tr]

[tr][td]2[/td] [td]The lack of access to other basic necessities of life [/td][/tr]

[tr][td]3[/td] [td]There are no guarantee of future [/td][/tr]

[tr][td]4[/td] [td]

The low quality of human resources and limited natural resources.

[/td][/tr]

[tr][td]5[/td] [td]

Lack of access to employment and sustainable livelihoods.

[/td][/tr]

[tr][td]6[/td] [td]

Susceptibility to shock the individual and the masses.

[/td][/tr]

[tr][td]7[/td] [td]Disability and social independence [/td][/tr]

[tr][td]8[/td] [td]

Inability to strive for physical or mental disability.

[/td][/tr]

[tr][td]9[/td] [td]

The lack of appreciation in social activities.

[/td][/tr]

[/table]

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1970-2000

The efforts to reduce poverty begun in early 1970. In 1976, the poverty population of about 54.2 million people (approximately 44.2 million people in rural areas, and about 10 million people in urban areas). There are a Guidance Community and Villages Support programs for reduce poverty. However, those efforts suffered a saturated stage in the mid of 1980. So, a reduction in poverty in the 1980 was not optimal. However, in 1980 reduced to approximately 42.3 million people or approximately 21.95 percent decrease from 1976.

Then, in the early 1990 the number increase immediately. In 1996, the number of poverty has increased to reach about 34.5 million people. On the other hand, the tendency of income widening inequality between sectors, include inter-group and inter-regional inequality. Then, Indonesian poverty situation is getting worse by the economic crisis in 1998. However, even though the economic growth can be resolved and recovered, poverty remains difficult to overcome. Moreover, in 1999, 27% of total Indonesia population faced poverty. As well as 33.9% villagers and 16.4% city residents are poor.

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2000-2008

In 2002, the number increased again to approximately 38.4 million. There are 25,1 villagers and 13,3 city residents. From 2003 to 2005, faced inflation and deflation of number. Then in 2007, the number of poor people decreased to approximately 37.17 million. Up to 55% of poverty occurred in Java island. On the other hand, the growth of low economic relatively ca not be able to absorb the labor force which come to labor market. It known as jobless growth. Jobless growth happened caused by machine uses. Meanwhile, in 2008, the increasing of poverty up to 15,42% for 34.96 million people. Compared to 2007, it fell into 2.21 million. The number of poverty in rural areas fell more sharply than in urban areas.

2015-2016

Then, in 2015, the increasing number up to 28,59 million (11,22 percent). It added up to 0,86 million compare than 2014 which reached 27,73 million. Meanwhile, in 2016, it up to 28,01 million and decreased to 0,50 million compare than 2015.

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Causes of Poverty

There are several reasons which causes the increasing of poverty. Such as:

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[toggle title=”Commodity”]

For most Indonesian people, there are several commodities which causes poverty. Such as :

Rice: The main commodity which contributes a lot for poverty indicator is rice. According to BPS, rice contributes up to 18,31% in cities and 25,35% in rural areas.
Cigarettes: Both in rural and urban areas contribute for 10,7 % of the poverty rate. That’s why, the price for cigarettes is quietly expensive.
Beef: The consumption of beef contribute for 4,94% of the poverty rate in cities. While in rural areas are up to 3.47%
Food needs: Its include chicken, onion, noodles, eggs, and other food stuffs.
Non-foods: Several factors like electricity, education, houses, gasoline and toiletries also play a role for increase poverty rate.

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[/toggle]
[toggle title=”Unemployment”]

The increasing of unemployment also play most important role in poverty rate. Thus unemployment can not earn income to fulfill their needs. Whereas the needs for every human increasingly growing every day. Then, unemployment causes detrimental impacts for society. They can make ordinary person changes to thieves, robbers or else which can bother the surrounding community.

On the other hand, in 2016, the number of unemployed in Indonesia decreased up to 5.5%. It rates reached the lowest point since 1998. Then, about 7.01 million people unemployed and lower than in 2015 which reached 5,81%, equivalent to 7.45 million people.

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[/toggle]
[toggle title=”Low Education Growth”]

Educational factors also has a big impact for poverty rate. The higher education causes more skill and experiences, the quality of person also increasing immediately. So, company will look after for get a workable results and also provide a high salary. As well as, They will feel not worry for life. However, it not affected for those who are less educated which has very low expertise and become so rare for company to willingly accept them as worker.

On the other hand, education is very important aspect for increase the progress of nation growth. However, the expensive cost for gets education obstructs its development. This is because there are still many people which live under poverty. Therefore, it contributes a lot for the low quality of education they receive. Unequal education is main reason especially in isolated areas. Education is more develops in big cities, so only people in city can get enough education. While in isolated areas, remain overshadowed by poverty. That’s why, the equalization of education provide considerable role for decreasing poverty rate.

[/toggle]
[toggle title=”Natural Disaster”]

Landslides, volcanoes, floods, even eruptions causes the failure of the farmers. That’s why there is no food can be consumed and sold to several cooperative or fences. The difficulties of food become one of reason why daily needs can not be fulfilled properly.

[/toggle]
[/accordion]

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Provinces with High Poverty Rate

For almost half of poverty occurred in Java island. According to the Central Statistic Agency, the number of poor people not only shows the demographic imbalances, but also the problem of the increasing unemployment.

East Java – Approximately up to 4.775 million people has a low income. Then, East Java province is the top of region which has poor people. More than 3.2 million people live in rural, while 1.5 million spread over major cities. The reason is they only get up to 318,000 rupiahs for monthly income.
Central Java – Even though for almost 20 thousand people out of poverty rate in early 2016, Central Java still get the second largest province with the highest province. Its up to 4,5 million people and the monthly income only 310,000 rupiahs.
West Java – It recorded reaches up to 4.48 million poor people in 2016 and most of them live in urban areas.
Lampung – For 80% people live under poverty with 1.1 million people in rural areas. They are only get 380 thousand for monthly income.
North Sumatra – The fourth province which has the largest poverty rate in Indonesia. For 1.5 million people with 352 thousand rupiahs in monthly income.
South Sumatra – Most of poor people live in rural areas. BPS recorded, there are about 1.12 million people with monthly income only 380 thousand rupiahs.
Aceh – Its often considered to be underachieving country. It recorded for 859 thousand people in Aceh live under poverty. That’s why, Aceh is also listed as the seventh poorest provinces in Indonesia according to BPS.
South Sulawesi – For approximately 864 thousands people live under poverty. Their monthly income even not reach 254 thousand rupiahs.
East Nusa Tenggara – A total of 1.16 million people currently classified as a poor. Most of them live in rural areas with 290 thousand rupiahs for monthly income. Then, standard salary in there around 1.6 million rupiahs.
Papua – The largest province with 898 thousand people live under poverty. The monthly income below 390 thousand rupiahs.

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How to Overcome Poverty

Meanwhile. there are several methods for overcome poverty in Indonesia. Such as :

1.The existence of jobs

Government must add more jobs in order to help those who still unemployment. Its purpose to reduce amount of unemployment so they can overcome at least their daily needs.

2.Skill Training Places

Provide skill training places for those who have no any skill in order to get jobs. So, they have at least know how to do work in order to get salary for fulfil their needs.

3.Increase Regional Minimum

It recommended for gain interest the unemployment for getting job. The higher amount of salary can gain more people to work for overcoming difficult circumstances.

4.Become Hard Worker

Beside the government, the community also have an important role for reduce poverty rate. If there is still no jobs, you can create your own jobs even hiring other people to become employment.

5.Overcome Corruption

Corruption also the biggest problems and reasons why poverty rate increasingly high. It needs to be reduce the level of corruption in order to reduce poverty rate and people can live in prosperous way.

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Poverty is problem which must be solved together. Government and communities must be cooperate each other in order to grow country becomes developing country like others. So, It can reach the purpose to get a healthy and under controlled life for save and protect next generation who will develop nation in well-behaved way.