The DEN has started evaluating the poverty line figures and will submit its report to President Prabowo Subianto.
"Based on our discussion, we saw the need to revise it," Pandjaitan stated at the International Conference on Infrastructure (ICI) 2025 in Jakarta, Thursday.
He confirmed DEN will coordinate with Statistics Indonesia (BPS) during the evaluation, though a completion target wasn't specified.
The move follows the World Bank's recent update to its poverty rate calculation, which now uses 2021 purchasing power parity (PPP) data.
This adjustment increased the poverty line for upper-middle-income countries to US$8.30 from US$6.85, consequently showing Indonesia's poverty rate at 68.25 percent.
BPS previously explained that the World Bank's PPP method adjusts for purchasing power between countries and is based on the median poverty line of 37 nations, not specifically tailored to Indonesia.
In contrast, BPS calculates its poverty line based on minimum expenditure for basic food and non-food needs, derived from the National Socio-Economic Survey (Susenas).
Several economists, like Wahyudi Askar from Celios, advocate for updating BPS's method, arguing that current approaches like the Food Poverty Line (GKM) and Non-Food Poverty Line (GKNM) are outdated.
Paramadina University economist Wijayanto Samirin believes Indonesia's poverty threshold is too low and should gradually align with the World Bank's approach.
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Translator: Imamatul Silfia, Resinta Sulistiyandari
Editor: Aditya Eko Sigit Wicaksono
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