Rp21,250 as a Benchmark for Daily Spending, Are You Still Categorized as Poor?

Kapanlagi.com - The Central Statistics Agency (BPS) has just announced the latest poverty line as of September 2024, set at Rp595,242 per capita per month. This figure represents the minimum amount needed to meet basic daily needs. Therefore, if a person's expenditure reaches Rp148,750 per week or Rp21,250 per day, they are considered not poor. However, the question is: is this amount sufficient for a decent living?

In the BPS report, this poverty line includes both food and non-food needs. Interestingly, about 74.5 percent of the total poverty line is allocated for food needs, while the remainder is used for other necessities. However, many are questioning the accuracy of this figure, especially amid soaring prices of essential goods.

On the other hand, this report also brings good news by highlighting a decrease in the poverty rate in Indonesia. In September 2024, the percentage of the poor population was recorded at 8.57 percent, down from 9.03 percent in March 2024. Nevertheless, the challenges for those living below the poverty line remain a primary concern. Is this decrease significant enough, or is there still much to be done to ensure a better life for all?

1. What is the Poverty Line?

According to the latest data from BPS Jatim, the poverty line is determined as the minimum amount needed to meet a person's basic living needs in a month, which as of September 2024 is set at Rp595,242 per capita. Of this amount, approximately Rp443,433 is allocated for food needs, while Rp151,809 is allocated for non-food needs.

This calculation is based on the market prices of basic goods and services, where for example, a person typically needs 1.5 kg of rice per week at a price of Rp22,500, plus the cost of protein such as eggs and chicken at Rp13,500 and Rp11,100 per week, respectively. However, the poverty line does not only include food; other needs such as electricity, transportation, and daily goods like soap are also important parts of this calculation.

2. How is the Rp21,250 Daily Expenditure Allocated?

With a daily budget of Rp21,250, one must be careful in managing expenses for food, transportation, and other necessities. For example, the consumption of rice reaching 0.2 kg per day already absorbs around Rp3,000, while sources of protein like eggs or chicken add an additional burden of around Rp1,500 to Rp2,000.

Not only that, simple transportation costs also take up around Rp7,000 every day, plus the need for electricity and water which ranges from Rp5,000 to Rp6,000. The challenges grow even larger with the soaring prices of basic goods, forcing many people to sacrifice important needs just to survive.

3. Challenges of Living Below the Poverty Line

Depending on only Rp595,242 per month is certainly not an easy journey for many families. They have to struggle hard to manage expenses very tightly to meet their daily basic needs.

The rise in food prices, such as rice and eggs, directly hits their purchasing power, while urgent needs like health and education are often neglected in the calculation of the poverty line. This situation creates significant challenges, especially when facing unexpected emergencies, leaving many families trapped in a whirlpool of hardship.

4. Decrease in Poverty Percentage 2024

Based on the latest data from BPS, encouraging news comes from the decrease in the number of poor people in Indonesia, which is now recorded at 24.06 million people as of September 2024, down from 25.22 million people in March 2024. This decrease is closely related to the stability of basic commodity prices and various effective government assistance programs. In urban areas, the poverty rate has shrunk to 6.66 percent, while in rural areas it stands at 11.34 percent. However, despite this positive trend being worthy of gratitude, the challenge of improving the quality of life for the community remains a primary concern that must continue to be fought for.

5. Should the Poverty Line Be Reevaluated?

Many parties argue that the poverty line figure of Rp595,242 per capita per month no longer reflects the reality of current living needs. With soaring prices of goods and rampant inflation, the purchasing power of the community is increasingly eroded.

Unlike the more comprehensive approach adopted by other countries, which not only assesses income but also considers access to health services, education, and basic infrastructure, the government needs to promptly reevaluate this poverty line figure to make it more relevant and aligned with the actual conditions of the community.

6. What is the poverty line?

The poverty line can be likened to the minimum expenditure threshold that an individual must meet to fulfill their basic life needs, ranging from nutritious food to equally important non-food necessities.

7. What is the daily expenditure limit below the poverty line?

Every day, a person living below the poverty line only has a budget of Rp21,250, which amounts to Rp148,750 in a week, and only reaches Rp595,242 in a month.

8. Is spending Rp595,242 per month enough for a decent living?

Various groups believe that this figure is still far from adequate to meet the needs of a decent life, especially amidst the soaring prices of basic necessities.

9. What affects the poverty line in Indonesia?

Soaring inflation, spikes in basic commodity prices, and the implemented social assistance policies all play a crucial role in determining the poverty line in our society.

(kpl/srr)