Report on Indonesian Poverty Dynamics: March 2025 Findings and Implications for Sustainable Development Goals

National Poverty Reduction and Progress on SDG 1 (No Poverty)

Despite localized challenges, Indonesia has demonstrated progress towards SDG 1 (No Poverty), achieving its lowest overall poverty rate in two decades. The national poverty rate saw a decline between September 2024 and March 2025.

• The national poverty rate decreased from 8.57% to 8.47%.
• The total number of people living in poverty fell by 210,000, reaching 23.85 million as of March 2025.
• The Central Statistics Agency (BPS) defines the poverty line as an expenditure of less than Rp 609,160 per month.
• In contrast to the urban increase, rural poverty declined significantly, falling from 11.34% (13.01 million people) to 11.03% (12.58 million people).

Urban Poverty Surge: A Challenge to SDG 1 and SDG 11 (Sustainable Cities and Communities)

A concerning trend has emerged in urban centers, presenting a significant setback for SDG 11 (Sustainable Cities and Communities) and complicating progress on SDG 1 (No Poverty). The data indicates a growing vulnerability within Indonesia’s urban population.

• The urban poverty rate increased from 6.66% in September 2024 to 6.73% in March 2025.
• This rise translates to an additional 220,000 people falling into poverty in urban areas, bringing the total to 11.27 million.
• This trend works directly against the goal of making cities inclusive and sustainable, highlighting growing inequality, a key concern of SDG 10 (Reduced Inequalities).

Key Drivers of Urban Poverty and Their Impact on Multiple SDGs

The BPS identified several interconnected factors driving the increase in urban poverty, each with significant implications for various Sustainable Development Goals.

1. Employment Challenges and Their Impact on SDG 8 and SDG 5

   Difficulties in the urban labor market are a primary cause, directly affecting SDG 8 (Decent Work and Economic Growth).

   • The number of underemployed individuals (working less than 35 hours per week) in urban areas rose by 460,000 between August 2024 and February 2025.
   • The open unemployment rate for men in urban areas increased from 5.87% to 6.06% during the same period.
   • This gender-specific unemployment trend has implications for SDG 5 (Gender Equality), as the economic shock disproportionately affects households where men are the primary breadwinners, exacerbating poverty.

2. Food Price Inflation and Its Threat to SDG 2

   Rising food costs have eroded the purchasing power of urban households, posing a direct threat to SDG 2 (Zero Hunger).

   • Prices for essential commodities, including cooking oil, bird’s eye chili, and garlic, have increased.
   • This inflation particularly affects the urban poor and vulnerable populations who rely on market prices for their food supply, jeopardizing their food security and access to nutrition.

Methodology

The findings are based on the March 2025 National Socioeconomic Survey, conducted by the BPS in February 2025. The survey encompassed 345,000 households across 38 provinces and 514 districts and cities nationwide.

SDGs Addressed in the Article

• SDG 1: No Poverty: The article’s central theme is the poverty rate in Indonesia, providing specific data on urban, rural, and national poverty levels. It directly discusses the number of people living in poverty and the national poverty line.
• SDG 2: Zero Hunger: The article connects rising urban poverty to increased food prices for essential commodities, which impacts the ability of the urban poor to afford sufficient food, thereby threatening their food security.
• SDG 8: Decent Work and Economic Growth: The text explicitly identifies rising unemployment among urban men and an increase in underemployment as primary drivers of the increase in urban poverty.
• SDG 10: Reduced Inequalities: The article highlights growing disparities by contrasting the rising poverty in urban areas with the declining poverty in rural areas. It also points to a gender inequality in employment, where male unemployment in cities is increasing while female unemployment is decreasing.
• SDG 11: Sustainable Cities and Communities: The focus on the “urban poverty rate” directly relates to the challenge of ensuring cities are inclusive and that all urban inhabitants have a decent standard of living. The increase in urban poverty indicates a challenge to this goal.

Specific Targets Identified

1. SDG 1: No Poverty

   • Target 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions. The article is framed around Indonesia’s national poverty measurement, as defined by the Central Statistics Agency (BPS). It reports on the proportion of the population living below the national poverty line of Rp 609,160 per month, detailing the rise in urban poverty from 6.66% to 6.73%.

2. SDG 2: Zero Hunger

   • Target 2.1: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations… to safe, nutritious and sufficient food all year round. The article states that a contributing factor to urban poverty is the “increase in food prices for key commodities such as cooking oil, bird’s eye chili, and garlic.” This directly impacts the economic access to food for the urban poor, whose purchasing power is eroded.

3. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… The article identifies a “rise in open unemployment rates among urban men” (from 5.87% to 6.06%) and an increase in “underemployed in urban areas by 460,000 people” as key reasons for the increase in urban poverty. This points directly to a lack of full and productive employment.

4. SDG 10: Reduced Inequalities

   • Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of… sex… or economic or other status. The article highlights a growing economic inequality between different groups. It shows a spatial inequality, with urban poverty rising while rural poverty falls. It also shows a gender-based disparity, noting that “the increase in open unemployment among men occurred specifically in urban areas,” while the rate for women decreased.

5. SDG 11: Sustainable Cities and Communities

   • Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums. The rise in the urban poverty rate to 11.27 million people signifies a growing challenge in making cities inclusive and ensuring a basic standard of living for all urban dwellers. An increase in urban poverty is directly counter to the goal of creating sustainable and inclusive cities.

Indicators for Measuring Progress

1. SDG 1: No Poverty

   • Indicator 1.2.1: Proportion of population living below the national poverty line, by sex and age. The article provides precise data for this indicator: a national poverty rate of 8.47%, an urban poverty rate of 6.73%, and a rural poverty rate of 11.03%. It also specifies the national poverty line as “individuals spending less than Rp 609,160 (approximately $37.29) per month.”

2. SDG 2: Zero Hunger

   • Implied Indicator: Food price volatility. While not a formal SDG indicator, the article’s mention of “the increase in food prices for key commodities such as cooking oil, bird’s eye chili, and garlic” serves as a direct measure of food price inflation, which affects food access for the poor.

3. SDG 8: Decent Work and Economic Growth

   • Indicator 8.5.2: Unemployment rate, by sex, age and persons with disabilities. The article provides specific data points for this indicator, stating the “open unemployment rate for men climbed from 5.87 percent in August 2024 to 6.06 percent in February 2025” in urban areas.
   • Implied Indicator: Underemployment Rate. The article explicitly defines and quantifies underemployment, stating, “The number of underemployed in urban areas increased by 460,000 people.” This serves as a direct indicator of the lack of decent and productive work.

4. SDG 10: Reduced Inequalities

   • Implied Indicator: Disparity in poverty rates by geographical location (urban/rural). The data showing urban poverty rising to 6.73% while rural poverty falls to 11.03% is a clear indicator of growing spatial inequality.
   • Implied Indicator: Disparity in unemployment rates by gender. The data showing the male urban unemployment rate increasing to 6.06% while the rate for women decreased serves as an indicator of a gender-based economic inequality.

5. SDG 11: Sustainable Cities and Communities

   • Proxy Indicator 11.1.1: Proportion of urban population living in slums, informal settlements or inadequate housing. The urban poverty rate of 6.73% (11.27 million people) can be used as a proxy indicator, as it represents the segment of the urban population most vulnerable to inadequate living conditions.

Summary Table: SDGs, Targets, and Indicators

Source: jakartaglobe.id