TEMPO.CO, Jakarta - The Indonesian government and lawmakers have agreed on the country's 2027 fiscal framework, with an adjusted poverty rate target in the range of 6-6.5 percent.
The Chair of Commission XI of the House of Representatives, Mukhamad Misbakhun, said the government is seeking to eradicate extreme poverty by 2027. "The poverty rate is in the range of 6.0 to 6.5 percent, and the extreme poverty rate is zero," Misbakhun said while reading the terms outlined under the 2027 Macroeconomic and Fiscal Policy Framework during the meeting on Thursday, June 11, 2026.
The aforementioned figure is lower than this year's poverty reduction target of 6.5 to 7.5 percent. Meanwhile, the extreme poverty rate is maintained at zero percent.
The latest data from Statistics Indonesia (BPS) shows that the percentage of people within the poverty line was still at 8.25 percent by September 2025, amounting to 23.36 million, down about 700,000 compared to the same period the previous year. Meanwhile, the extreme poverty rate was 0.78 percent in September 2025.
Over the past 10 years, Indonesia's poverty rate has fluctuated, with 11 percent in 2015, which dropped to 9 percent, and briefly increased to 10 percent in 2020 and 2021, before dropping to the current level of 8 percent.
BPS data also shows that the percentage of urban in September 2025 increased from 6.73 percent to 6.60 percent. Meanwhile, in rural areas, it decreased from 11.03 percent to 10.72 percent.
Maluku and Papua hold the highest poverty rate domestically, with 18.22 percent. Meanwhile, the lowest rate is recorded in Kalimantan, at 5.02 percent. However, in terms of numbers, Java holds the largest poor population at 12.32 million.
Read: Indonesia Looks to China for Poverty Reduction Efforts
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