Jakarta's Poverty Rate Reaches Highest Level in the Last 20 Years

The COVID-19 coronavirus pandemic, ongoing since March 2020, has driven an increase in the number of impoverished residents in Jakarta. According to the Central Bureau of Statistics (BPS), the number of poor people in Jakarta has reached 502,000, or 4.72% of the capital's total population.

This poverty rate in the province led by Anies Baswedan is the highest in the last 20 years. Previously, the highest poverty rate in Jakarta occurred after the 1997-98 Asian financial crisis in 2000, reaching 4.96%.

The high poverty rate in Jakarta coincides with weakened public purchasing power during the coronavirus pandemic. In addition, many Jakarta residents have experienced layoffs (PHK).

BPS data shows that the open unemployment rate (TPT) in Jakarta reached 8.51% in February 2021. Of that number, 119,824 people were unemployed due to the pandemic's impact.

The implementation of Emergency Community Activity Restrictions (PPKM) from July 3 to 20, 2021, could further increase the number of Jakarta residents living below the poverty line. This is because the policy restricted a number of public activities, including business and trade.