Tuesday, February 11, 2025

Sri Mulyani targets significant poverty reduction by 2025

Reading Time: 2 minutes
Julian Isaac

Journalist

Editor

Interview

Minister of Finance, Sri Mulyani Indrawati, says spatial poverty remains a significant challenge for Indonesia that the government is actively working to reduce poverty levels in line with the improving national economic growth.

“Indonesia’s economic recovery, with a sustained growth rate of around 5 percent, has managed to reduce the poverty rate,” she told a hearing with Committee IV of the Regional Representatives Council (DPD) on Tuesday, June 11, 2024.

Overall, the poverty levels in most provinces have dropped below pre-COVID-19 levels, indicating a recovery in Indonesia’s economy after the pandemic crisis.

Sri Mulyani cited that the regions of Papua and Nusa Tenggara have the highest poverty rates in Indonesia, reaching 24.76 percent and 16.99 percent respectively in 2023. In comparison, Maluku has a poverty rate of 12.29 percent and Sulawesi stands at 10.08 percent. Meanwhile, the poverty levels in Java and Bali are below 10 percent, similar to Kalimantan and Sumatra.

However, only Java and Bali experienced an increase in poverty rates between 2019 and 2023, with Java’s rate rising from 8.4 percent to 8.79 percent and Bali’s from 3.8 percent to 4.25 percent.

For 2025, the Ministry of Finance aims to lower the national poverty rate to between 7 percent and 8 percent, down from 9.36 percent in 2023. To achieve this goal, the Ministry has allocated a budget of Rp 496.9 trillion(US$30.5 billion) to Rp 513 trillion for the 2025 State Budget (APBN).

This budget will be used to accelerate poverty alleviation and reduce regional disparities. The planned measures include expediting poverty graduation, improving access to financing for affordable and decent housing, promoting prosperous farmers and fishermen, and accelerating the development of self-sufficient villages.

Sri Mulyani highlighted the positive trend and the government’s commitment to addressing poverty and inequality across the nation.

“The recovery in Indonesia’s economy, with growth consistently around 5 percent, has been crucial in reducing the poverty rate,” she said.

Julian Isaac

Journalist

 

Editor

 

Interview

SUBSCRIBE NOW
We will provide you with an invoice for your reimbursable expenses.

Free

New to Indonesian market? Read our free articles before subscribing to the premium plan. If you already run your business in Indonesia, make sure to subscribe to the premium subscription so you won’t miss any intelligence & business opportunities.

Premium

$550 USD/Year

or

$45 USD/Month

Cancelation: you can cancel your subscription at any time, by sending us an email inquiry@ibp-media.com

Add keywords to your market watch and receive notification:
Schedule a free consultation with us:

We’ll contact you for confirmation.

FURTHER READING

The Ministry of Trade supports the plan to extend the relaxation of copper concentrate exports for PTFI until December 2025. The recommendation was issued during the PTFI Copper Concentrate Export Policy Meeting led by Coordinating Minister for the Economy, Airlangga Hartarto.
The House of Representatives (DPR) has decided to postpone all budget efficiency discussions in each commission with ministries/institutions due to budget reconstruction policy by the government.
Minister of Investment and Downstream/Head of the Investment Coordinating Board, Rosan P. Roeslani, renews the Indonesian government’s commitment to achieve 8-percent economic growth by 2029 driven by investment and industrial transformation.
Indonesia must enhance its business environment to accelerate economic growth and escape the middle-income trap, according to Norman Loaiza, Director of the Global Indicators Group at the World Bank Group. Speaking at the launch of the Business Ready (Be Ready) Report, Loaiza highlighted key areas where Indonesia needs improvement to attract investments and foster a dynamic private sector.
PT Indonesia Weda Bay Industrial Park (IWIP) in North Maluku has been reported to the Ministry of Environment by Commission XII of the Indonesian House of Representatives (DPR RI) for alleged environmental destruction.
The Attorney General’s Office (AGO) has clarified on the search conducted at three rooms of  the Office of the Directorate General of Oil & Gas at the Ministry of Energy and Mineral Resources (ESDM) located on Jalan Rasuna Said in Central Jakarta on Monday, February 10, 2025.