Rapid economic development in Jabodetabek—a metropolitan area consisting of Jakarta, Bogor, Depok, Tangerang, Tangerang Selatan, and Bekasi—has caused an influx of migrants to the region, leading to the highest urban concentration in Indonesia. Despite such development, the poverty rate has remained relatively stagnant at around 6% since the early 2000s. Due to their formulation being based on the national poverty profile, the poverty reduction programs in Jabodetabek may not be effective. Therefore, it is important to specifically assess the poverty profile of Jabodetabek.
By comparing the correlates of poverty in Jabodetabek and Indonesia as a whole using Susenas data, this study finds that Jabodetabek’s poverty profile is significantly different from the national one, in particular in terms of educational attainment, access to drinking water, employment sector, and employment status. For educational attainment, the completion of elementary school alone is not enough to reduce the probability of being poor. Access to drinking water is shown to have no correlation with poverty in Jabodetabek, while it remains significant at the national level. As for employment sector, manufacturing, with its capabilities to absorb a great number of laborers, has made significant contributions in minimizing the chances of becoming poor. Meanwhile, contrary to the national trend, unpaid family workers in Jabodetabek have a lower probability of being poor.
This study has important implications for the effectiveness of poverty reduction programs in metropolitan areas, particularly as the number of metropolitan areas keeps growing nationally and globally. The findings of this study indicate that social and economic policies in metropolitan areas should be tailored toward achieving higher educational attainment, fostering the growth of the manufacturing sector, improving basic infrastructure, and scaling up internet access for all, especially for the poor.
Keywords: poverty, metropolitan, Jabodetabek, Indonesia