Addressing Poverty and Inequality for Future Prosperity

Poverty and Inequality Analysis

Chapter 14 analyzes Indonesia’s progress and challenges in reducing poverty and inequality to achieve the Golden Indonesia Vision 2045. While national poverty rates have declined significantly over the past 2 decades, inequality remains entrenched, with sharp regional disparities. The analysis underscores that Indonesia’s national poverty line falls below international benchmarks for upper middle-income countries, obscuring the true scale of deprivation. The chapter argues that achieving the Vision 2045 targets of near-zero poverty and a substantially lower Gini ratio requires a shift from generic interventions to context-sensitive strategies. It proposes three key approaches: (i) customized poverty reduction programs tailored to individual household needs for regions with low poverty; (ii) a comprehensive “graduation approach” to build sustainable livelihoods in high poverty areas; and (iii) human capital development among poor and vulnerable people to break intergenerational cycles of poverty. These strategies aim to foster inclusive growth, enhance social mobility, and ensure equitable development trajectory.

Share this page

Author 
Asep Suryahadi
Author(s)
Editor(s) 
Jiro Tominaga
Budy P. Resosudarmo
Reza Anglingkusumo
Priasto Aji

Editor(s)

Jiro Tominaga
Budy P. Resosudarmo
Reza Anglingkusumo
Priasto Aji
Research Area 
National
Research Topic 
Keywords 
poverty
inequality
Golden Indonesia Vision 2025
Policy
Prosperity
Publication Type 
Book and Book Chapter
Publisher Name 
Asian Development Bank