Indonesia Has Highest Poverty Rate Among Upper-Middle-Income ASEAN Countries

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Adi Ahdiat 05/05/2025 11:50 WIB

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According to World Bank data, there are currently three upper-middle-income countries in ASEAN: Indonesia, Thailand, and Malaysia. Among these, Indonesia has the highest poverty rate.

Percentage of Poor Population in Upper-Middle-Income ASEAN Countries (2024)*

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Percentage of Poor Population in Upper-Middle-Income ASEAN Countries (2024)*

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According to World Bank data, three ASEAN countries are currently categorized as upper-middle income: Indonesia, Thailand, and Malaysia.

Of these, Indonesia has the highest poverty rate.

The World Bank sets the poverty line for upper-middle-income countries at $6.85 based on purchasing power parity (PPP).

This means that, in upper-middle-income countries, individuals with expenditures less than $6.85 PPP/person/day are classified as poor.

Based on this standard in 2024, 60.3% of Indonesia's population is considered poor. Meanwhile, the percentage of the poor population in Thailand is 7.1%, and in Malaysia it is only 1.3%.

It should be noted that the World Bank measures poverty using PPP, a special calculation method that compares the real purchasing power of currencies between countries, not using foreign exchange market rates.

"PPP allows for a 'real' comparison of economies and population welfare, taking into account price differences in various countries," stated the World Bank in its report, *Fundamentals of Purchasing Power Parities*.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."