Jakarta, Indonesia Sentinel — Urban poverty in Indonesia rose in March 2025, driven by a spike in underemployment and rising food prices, according to data released by the country’s Central Statistics Agency (BPS).
BPS Deputy for Social Statistics Ateng Hartono said the uptick was closely linked to a growing number of underemployed workers classified as those who work fewer than 35 hours per week and are either actively seeking or willing to accept additional employment.
Official figures show that the urban poverty rate rose by 0.07 percentage points, from 6.66% in September 2024 to 6.73% in March 2025.
“There are several socioeconomic conditions tied to the increase in urban poverty. The first is the rising number of underemployed,” Ateng said in a statement reported by Antara on Friday (July 25).
BPS reported that the number of underemployed workers in urban areas increased by approximately 460,000 people between August 2024 and February 2025.
Another contributing factor is the rise in the open unemployment rate among urban males, which climbed from 5.87% in August 2024 to 6.06% by February 2025.
“Men are often the primary breadwinners, so a higher male unemployment rate has a direct impact on urban poverty,” Ateng noted.
He also pointed to education as a key variable. BPS found that 59.45% of heads of poor households had only completed junior high school or an equivalent level of education. Limited educational attainment, he said, restricts access to decent employment opportunities.
Nearly half, approximately 49.01% of poor household heads were working in the informal sector, which is typically characterized by low wages, lack of job security, and limited social protections.
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Ateng added that a significant increase in food prices also played a role in the poverty uptick. Price hikes for essential goods such as cooking oil, bird’s eye chili, and garlic have eroded purchasing power, especially among the most economically vulnerable.
“In urban areas, most households don’t produce their own food. So when prices go up, their purchasing power is hit hard, especially for low-income or near-poor families who are just one shock away from slipping into poverty,” he explained.
As inflation and labor market challenges persist, policymakers are under growing pressure to protect vulnerable urban populations and improve access to quality jobs and affordable food.
(Raidi/Agung)
