Multidimensional Poverty in Indonesia: Trends, Interventions and Lesson Learned

Despite the Government of Indonesia’s commitment to address human security as stated in its ambitious medium-term development plan and the Millennium Development Goals, poverty in its multidimensionality remain a major issue in Indonesia as a significant proportion of the Indonesian population is still consumption poor. Whilst the number of the poor has been decreasing consistently since 2002, most of those escaping poverty are still vulnerable and just a small shock can send them quickly below the poverty line. Using the PPP $2/day poverty line as a vulnerability measure, the World Bank (2006) found that 45% of Indonesians remain vulnerable to poverty. Nonconsumption poverty is even more problematic which includes malnutrition, maternal health, and access to basic services. For example, a quarter of children below the age of five are malnourished, only about 72% of births are accompanied by skilled birth attendants, 45% of poor households have no access to sanitation, more than half have no access to safe water, and around 20% of children from these households do not continue to junior secondary school.