Poverty Rate in Papua Increased in March 2021

Papua is recorded as the province with the highest poverty rate in Indonesia. Its poverty rate reached 26.86% in March 2021, up from 26.8% in September 2020. This percentage is also higher than the 26.64% recorded in March 2020.

According to the Central Statistics Agency (BPS), there are eight reasons for the increase in poverty in Papua. First, Papua's non-mining and quarrying economy contracted by 3.76% (year-on-year/yoy) in the first quarter of 2021.

Second, there was a weakening of purchasing power in Papua, reflected in a decrease in household consumption expenditure of 4.72% (yoy). Third, the annual inflation rate in three cities in Papua reached 2.47% in March 2021.

Fourth, there was an increase in the retail prices of several staple commodities between September 2020 and March 2021. Fifth, the open unemployment rate (TPT) in Papua reached 3.77% in February 2021. Sixth, the farmer's exchange rate (NTP) in Papua fell by 0.67%, from 103.59 in September 2020 to 102.9 in March 2021.

Seventh, the percentage of households receiving social assistance from the Family Hope Program (PKH), staple food aid (sembako), and regional government programs decreased in March 2021 compared to September 2020. Furthermore, the utilization of PKH Phase 1 2021 in Papua only reached 89.6% as of March 31, 2021.

The final reason for the increase in poverty in Papua is the surge in COVID-19 cases. This led to restrictions on several activities in Papua.