BPS Clarifies Desiles Are Relative Welfare Indicators, Not Absolute Poverty Measures

Indonesia's Central Statistics Agency (BPS) has emphasized that the 'desiles' used in the National Social and Economic Single Data (DTSEN) are indicators of relative welfare positioning, not definitive measures of poverty or family income. Amalia Adininggar Widyasanti, head of BPS, explained that a desile simply shows a family's place within ten ranked groups based on socioeconomic characteristics.

"A desile shows a family's relative position compared to other families based on various socioeconomic characteristics," Amalia stated. She further clarified that families within the same desile do not necessarily share identical incomes, expenditures, or economic conditions. This is because desile determination is not based on a single factor like income, asset ownership, or electricity consumption.

Instead, BPS employs the Proxy Means Test (PMT) statistical method. This approach considers a wide array of socioeconomic factors simultaneously, including housing conditions, access to drinking water, cooking fuel, asset ownership, electricity usage, family composition, education, employment, health status, and disabilities. PMT is an internationally recognized method used when detailed income or consumption data is difficult to obtain or verify.

BPS utilizes desiles as a ranking tool to assist government ministries and agencies in identifying and prioritizing target groups for their programs. However, BPS stresses that desiles are not lists of program beneficiaries and must always be interpreted within the context of specific programs. The agency also noted that a family's desile position can change as their socioeconomic conditions evolve and their relative standing shifts compared to other families, highlighting the need for continuous data updates.