Indonesia Targets 6-6.5% Poverty Rate by 2027, Aims for Zero Extreme Poverty

Indonesia's government and lawmakers have agreed to target a poverty rate between 6% and 6.5% for 2027. A key objective is to eliminate extreme poverty entirely by that year. "The poverty rate is in the range of 6.0 to 6.5 percent, and the extreme poverty rate is zero," stated Mukhamad Misbakhun, Chair of Commission XI of the House of Representatives, during a meeting on the 2027 Macroeconomic and Fiscal Policy Framework.

This new target represents an acceleration from the current year's goal, which aimed for a poverty rate between 6.5% and 7.5%. The commitment to maintaining zero extreme poverty remains consistent. Official data from Statistics Indonesia (BPS) indicated that as of September 2025, 8.25% of the population, or 23.36 million people, lived below the poverty line. This figure marked a decrease of approximately 700,000 people compared to the previous year. The extreme poverty rate stood at 0.78% during the same period.

Over the past decade, Indonesia has seen fluctuations in its poverty rate, moving from 11% in 2015 to a low of 9%, then rising to 10% in 2020 and 2021 before settling around 8%. Data also reveals a slight decrease in the urban poverty rate to 6.60% in September 2025 from 6.73% previously, while the rural rate fell from 11.03% to 10.72%. The regions of Maluku and Papua continue to report the highest poverty rates at 18.22%, contrasting with Kalimantan's lowest rate of 5.02%. However, Java accounts for the largest number of poor individuals, with 12.32 million people.

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The poverty rate is in the range of 6.0 to 6.5 percent, and the extreme poverty rate is zero.