Rural poverty rates have consistently been higher than urban rates since 1993. According to data from the Central Bureau of Statistics, the proportion of rural poverty in 1993 reached 13.8 percent of the population, while urban poverty was only 13.4 percent. Increased industrialization, creating numerous jobs in major cities, resulted in lower urban poverty rates compared to rural areas.
In September 2017, the number of poor people in rural areas decreased by approximately 970,000 to 26.58 million, resulting in a 49 basis point (bps) drop in the poverty rate to 13.47 percent compared to September of the previous year. Meanwhile, the number of poor people in urban areas decreased by approximately 220,000 to 10.27 million. As a result, the urban poverty rate fell by 47 bps to 7.26 percent.
Overall, the number of poor people in Indonesia in September 2017 decreased by 1.18 million to 26.58 million compared to September of the previous year. Consequently, the national poverty rate decreased by 58 bps to 10.12 percent.
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