PPKE is a focused, integrated and sustainable effort carried out by the central government, regional administration and/or communities, in the form of policies, programs and activities to empower, assist and facilitate the fulfillment of the basic needs of every citizen.
This effort relies on the Targeting the Acceleration of the Elimination of Extreme Poverty (P3KE) data on households and individuals, based on the updated families database compiled by the National Population and Family Planning Board (BKKBN) in 2021.
The data covers neighborhood units/hamlets/community units and all administrative levels (village/sub-district, district, regency/municipality, province and the central government) and have been validated according to citizen identification number (NIK) by the Population and Civil Registration (Dukcapil), based on welfare status, expressed in deciles. Ministries, local administrations and other government agencies running poverty alleviation and social protection programs are free to use the comprehensive database.
According to BPS, in 2022 there were around 6.3 million households and 28.7 million individuals who belonged to the extreme poor group in Indonesia (see Figure 3). The three provinces with the highest number of extremely poor people are East Java (5.1 million), West Java (4.91 million) and Central Java (4.88 million). Meanwhile, the three provinces with the highest extreme poverty ratios are West Papua, Papua and East Nusa Tenggara (NTT). FIGURE 3
By relying on the extreme poverty threshold of US$1.90 PPP, the Indonesian government seems optimistic that it can eliminate extreme poverty by 2024, but it is clear that there are still many challenges in the implementation of PPKE.
In order for it to be effective and efficient, there are three policy strategies that the government can focus on. First, reduce the public expenditure burden through the provision of social assistance, social security and subsidies. Second, increase people’s income through community empowerment. Third, reduce the number of pockets of poverty through the development of basic service infrastructure.
The page of P3KE data service provided through the Kemenko PMK website shows that Indonesia still uses the old extreme poverty line of US$1.90 PPP. It has yet to be updated to the new definition of US$2.15 PPP. Statistics Indonesia (BPS) should adjust the indicator in line with international standards. While this adjustment might increase the number of extremely poor people living in Indonesia, it will ensure that Indonesia’s data is consistent with the benchmark used around the world for a more accurate cross-national comparison.
By implementing the latest globally-accepted indicator of extreme poverty, it is hoped that the Indonesian government can further increase the number and quality of poverty reduction programs in a more effective, efficient and equitable manner, across the country. Availability of solid and comprehensive data will go a long way to improving the welfare of the people, especially the poorest of the poor.
In addition, the government is expected to be more transparent and accountable in planning and budgeting, especially with regard to the data of eligible recipients, as well as its implementations from the central down to the regional levels. Rigorous monitoring and transparent evaluation involving all stakeholders is critical to ensure the success of these programs and meet the stated target.