There are over 28 million people in Indonesia considered to be poor according to national standards. The Multidimensional Poverty Index, or MPI, focuses on standards of living and measures 10 indicators of multiple deprivations in a household. The 10 indicators include issues of education and health. To be considered multi-dimensionally poor, a person needs to be deprived in at least three out of the 10 indicators.
In Jakarta, 20.8 percent of the population has multiple deprivation and 12.2 percent is vulnerable to multiple deprivations. The intensity of deprivation means the degree to which the average percentage of the people is in multidimensional poverty. As of 2014, this was 45.9 percent.
The population of Jakarta is 10 million at night and increases to 11.2 million in the day as individuals travel into the city for work. As of 2014, the poverty rate and Gini coefficient ratio, a measurement tool for the gap in income, have increased immensely due to increasing rates of inflation and the weaker rupiah. The result is a higher poverty index.
The poverty index ratio increased to 8.9 percent from eight percent in the previous year. The country average for Indonesia is 8.3 percent. The coefficient ratio has gone from a measurement of .364 in 2013 to .436. The ratio illuminates the income distribution among the city’s population as well as the inequality of the economy.
There has been an increase in the poor population from 3.7 percent in 2013 to 4.9 percent. Based on the population of Jakarta, the number of poor has increased from 371,000 to 412,790. Due to poverty, issues of malnutrition, no proper sanitation, lack of electricity and limited educational opportunities are often issues occurring in tandem.
It is important that proper indicators are used to determine the amount of the population that is poor in order to correctly assess their needs. In the words of Amartya Sen, author of the book, “Development as Freedom,” poverty should be seen “as a deprivation of basic capabilities, rather than merely as low income.”
Currently, the national poverty line is based on monetary measures. These measures, utilized by the Millennium Development Goals to indicate the national poverty line, have assisted in growth and processes that have recently been taken by the Indonesian government. In addition, budgeting and planning resources have been observed.
– Erika Wright