19 Oct Will Indonesia reach the target of zero poverty in 2024?
The Indonesian government has a target of ending extreme poverty by reaching zero percent by 2024. Head of Bappenas Suharso Monoarfa said the government would reform the social protection system by reducing poverty levels. The Indonesian government seeks to solve poverty with a strategy that is consolidated, integrated, and on target. So that the division of tasks for each ministry and institution is clear.
This article will describe the state of poverty in Indonesia and various efforts to solve penury so that readers can conclude the achievement of the government’s target in 2024.
Levels of poverty in Indonesia
According to data released by BPS in March 2021, 10.14% or 27.54 million of Indonesia’s population are poors. In 2019 Indonesia reached the lowest poverty rate ever achieved, which was 9.22%. However, with the COVID-19 pandemic, the penury rate in Indonesia has increased by 1.12 million people. with the largest increase occurring in urban areas by 1 million and rural areas by 120,000 people. In urban areas, penury rose by 1 million people and in rural areas by 120 thousand people.
The increasing penury rate during the pandemic was caused by the economy not running smoothly. Unemployment is increasing and job opportunities are decreasing. Limited social mobility makes companies reduce productivity so that it also has an impact on reducing the number of employees. In addition, many companies went bankrupt and closed their companies because there was not enough capital to finance the company’s operations.
The impact of high penury levels
There are several impacts that caused by penury. One of them is the decline in the level of community welfare. Measurement of the level of welfare can be seen from the purchasing power of the people. In 2020, on average, all households in Indonesia experienced a decline in expenditure of -2.3%. However, the decline in spending by urban people is greater than that of rural people. This is related to the explanation above regarding various companies that have terminated their relationship. Whereas in rural areas it is less affected because the majority of work in the village is farming.
On the other hand, penury can lead to crime in society. Crime can be used as an excuse by various people to commit crimes as an alternative solution to fulfill their lives in carrying out their lives. Based on research, there are at least four crimes that are motivated by penury. The four crimes included: theft, embezzlement, fraud, and maltreatment. However, it is possible that the four crimes were motivated by other factors.
Moreover, poor people are also very closely related to poor health. Health includes a state of well-being of body, soul, and social that allows a person to live socially and economically productive. People who experience poverty experience many health problems because of the tendency for food to have unbalanced nutrition. This is due to the economic inadequacy to buy foodstuffs that have good nutritional value. As a result, many of them (especially children) are malnourished.
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Then, how are Indonesia’s efforts to achieve the target of no poverty in 2024?
Indonesia has taken various ways to reduce poverty levels. According to the technical guidelines for the preparation of action plans for sustainable development goals, there are two main strategies, that is reducing the burden of spending through social assistance and increasing income through productive economic programs. Macroeconomic policies are also a requirement for poverty reduction, which include inclusive economic growth, creating productive employment opportunities, maintaining the investment climate and trade regulations, increasing agricultural sector productivity, and developing infrastructure for disadvantaged areas.
Even during a pandemic, the government is still trying to implement various strategies so that penury does not increase. Based on the results of the 2020 housing survey, 85% of households received at least one assistance program from the government. Assistance programs provided by the government include Program Keluarga Harapan (PKH), Bantuan Pangan Non-Tunai (BPNT), Bantuan Langsung Tunai Dana Desa (BLT DD), and Bantuan Sosial Tunai (BST). The social assistance program provided by the government is currently targeting poor households.