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ccording to the Central Statistics Agency (BPS), the number of Indonesians living in poverty dropped by 1.5 million during the year ended in March, partly because the stability of food prices.

As of March, around 31.02 million people were living below the poverty line or about 13.33 percent of the total population, a BPS report says.

These figures indicate a reduction of 1.5 million people from the 32.53 million (or 14.15 percent of the total population) living in poverty in March last year.

However, BPS chief Rusman Heriawan said this year’s figures
were less than the reduction witnessed in March last year (down 2.43 million).

“We have seen a reduction in the number of people living below the poverty line, but it wasn’t as big as we had hoped,” Rusman said at his office on Thursday.

He said the reduction was largely a result of improved stability in the market prices of basic foods.

“The bigger reduction in the number of people living in poverty last year was thanks to the direct-cash aid program provided by the government to the poor,” he said.

“Cash aid was very effective in reducing poverty in that period,”
he said.

Between March 2009 and 2010, the total number of poor people in urban areas declined by 0.81 million, more than in rural areas where the total declined 0.69 million, the report says.

“I don’t think our poverty reduction policy is typically pro-urban, ignoring the fact that rural areas have a higher number of poor people,” Rusman said.

The poverty line is the minimum level of income the government deems necessary to achieve an adequate standard of living.

According to the statistics agency, Indonesia’s poverty line was increased to Rp 211,726 per capita per month during the period of March 2009 to March 2010, from Rp 200,262 per capita per month in the same period in the previous year.

Poverty reduction had been more successful in urban areas than in rural areas because of many government social safety net programs — rice for the poor households (Raskin), public health insurance (Jamkesmas) and school operational funds (BOS) — were more readily distributed to the urban poor, Rusman said.

He said low inflation between March 2009 and March 2010 was one of important contributing factors of this year’s poverty reduction figures.

The stable prices of basic commodities had also led to an improvement of the people’s welfare, he said.

According to the report, Indonesia’s inflation rate in March 2009 to March 2010 period reached 3.43 percent, showing an increase of prices in some sectors including a 4.11 percent increase in the price of unprocessed foods; 8.04 percent in food, beverages, cigarettes and tobacco; 3.85 percent in education, recreation and sports; 3.18 percent in health; 0.78 percent in clothing; 2.08 percent in housing, water, electricity and gas; and 1.38 percent in transportation, communication and financial services.

This year’s increase in rice production also contributed to the reduction of poverty. In 2010, rice production reached 65.15 million tons, a 1.17 percent increase from the 64.40 million tons produced in 2009.

“All these factors contributed positively to the reduction people living below the poverty line,”
Rusman said. (ebf)