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Rural poverty in Indonesia

In 2007 23.6 million rural Indonesians were living below the national poverty line, 1 million less than in 1996. Poor people represent 20 per cent of the rural population and 11 per cent of the total population. But the overall national poverty rate masks the large number of ‘near-poor’ people who live just above the poverty line and are at risk of sliding below that line into poverty. In 2004 about 30 per cent of the population were living above the national poverty line, but they were subsisting on less than two dollars a day. For this reason poverty reduction strategies need to focus on increasing the incomes of both poor and near-poor people.

Who are the country’s poor rural people?
Increasingly, poverty is concentrated among rural households. The poorest people in rural areas tend to be farm labourers working on other people’s land, and smallholders farming on extremely small plots of less than 0.5 ha. There is a large proportion of women in the labour force, but they earn less than men. Poor women are often physically overworked because they have to attend to household work in addition to agricultural tasks. Often they are excluded from decisions that affect them.

Where are Indonesia's rural poor people?
The poorest areas of Indonesia are the remote eastern islands, where 95 per cent of people in rural communities are poor. Unsustainable livelihood systems and isolation make people vulnerable to external shocks and are the principal causes of poverty, mainly in the upland areas. 

In many provinces in Eastern Indonesia farmers make their living by harvesting a single crop on dry land. They live in a subsistence economy and are not able to achieve food self-sufficiency through their farming activities. Many live in coastal areas that are environmentally degraded. Upland villages, which are the most disadvantaged, require development programmes adapted to their specific needs. Many of these remote areas are accessible only by boat, on foot or by small plane. The road network is in poor condition and requires major investment.

The eastern provinces are also home to many indigenous communities, which are often on the margins of development processes and programmes.

Source: IFAD