Indonesia's Highest Poverty Rate is Located in This Region

Indonesia's poor population in March 2020 reached 26.42 million people, or 9.78% of the total population. This figure increased from the previous year's 9.41%, or 25.14 million people. The highest percentage of poor people was found in Maluku and Papua, at 20.34%. Meanwhile, the lowest percentage was in Kalimantan at 5.81%.

Statistics Indonesia (Badan Pusat Statistik) stated that the increase in poverty was influenced by the Covid-19 pandemic, which hit the Indonesian economy. The impact was felt by 12.15 million near-poor individuals working in the informal sector. This group is vulnerable to poverty and was significantly affected by Covid-19.

Other contributing factors include slowing household consumption, a decrease in foreign tourist visits, and falling retail prices for several commodities.