Understanding Metropolitan Poverty: The Profile of Poverty in Jabodetabek Area


ABSTRACT

Jabodetabek refers to the metropolitan area which consists of Jakarta, the capital of Indonesia, and its surrounding areas Bodetabek (Bogor, Depok, Tangerang, South Tangerang, and Bekasi). The rapid economic development in Jabodetabek has caused an influx of inhabitants to the region, subsequently leading to the highest urban concentration in Indonesia. Since many of the migrants were poor, despite the rapid development, the poverty rate in this area has been relatively stagnant at around six percent since early 2000s. There is a possibility that the poverty reduction programs are not effective in Jabodetabek because these programs were developed based on the national poverty profile. Therefore, it is important to assess whether the poverty profile in Jabodetabek is different from the national poverty profile. Hence, this study analyzes the correlates of poverty in Jabodetabek and Indonesia using data from the National Socio-Economic Survey (SUSENAS).

The results indeed indicate that poverty profile in Jabodetabek area is significantly different from the national level, especially in regard to education level, access to drinking water, employment sector, and status of employment. In terms of education attainment, it is found out that the completion of only up to elementary school is not significant in reducing the probability of being poor in Jabodetabek area, but it is still significant at the national level. Basic necessities like clean water shows no correlation with poverty in Jabodetabek, while it remains significant at the national level. Type of employment sector is also highly correlated with poverty. Industrial sector with its capabilities to absorb a great number of labors appears to have significant contribution in minimizing the probability to become poor in Jabodetabek. In regard to the status of employment, people who work for the family as an unpaid worker have lower probability to fall into poverty in Jabodetabek, while at the national level it works in opposite direction. These findings imply that socio-economic policy in Jabodetabek should be tailored at aiming for a higher education attainment for its people and at the same time fostering the productivity and growth of the industrial sector.

Keywords: Poverty, metropolitan, Jabodetabek, Indonesia