Poverty Rate Predicted to Return to Two-Digit Level

Jakarta, Britishcourse.com – The Institute for Development of Economics and Finance (Indef) projects that the poverty rate in 2021 will be at the double digit level, or to be precise 10.5%.

According to the Executive Director of Indef, Tauhid Ahmad, this is due to several factors, including the social protection program at PEN (National Economic Recovery) that does not reduce poverty, but tends to only keep the spending of the poor from falling into a worse condition. Moreover, in practice in the field, the social assistance (bansos) received is often not in accordance with the nominal budgeted.

“The social assistance scheme for the poor, which is Rp. 600,000 per month, is around 23% of their living needs. Such a value does not necessarily mean that the real is that big. For example, the basic needs, real received is much smaller. So this cannot replace their lost income during this pandemic, “said Tauhid Ahmad to Beritasatu.com, Sunday (14/2/2021).

In addition, the increasing unemployment rate, according to him, will also encourage additional new poor people, especially those from groups above the poverty line. Indef itself projects that the Open Unemployment Rate in 2021 will reach 7.8% or 10.4 million people.

“Nearly 60% of the poor people spend on food and beverages. We can see, the trend in food and beverage consumption until the fourth quarter of 2020 has actually decreased. Why did that happen? Of course because of the pandemic that has caused many people to lose their jobs, especially in small groups, “said Tauhid.

Based on the latest data from the Central Statistics Agency (BPS), the percentage of poor people in March 2020 was 9.78% or 26.42 million people, an increase of 1.63 million people in September 2019 and an increase of 1.28 million people in March 2019.

Source: BeritaSatu.com

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