The Case for Multidimensional Poverty Metrics in Indonesia
A 10-year-old boy in East Nusa Tenggara, Indonesia, died by suicide following his family’s inability to afford school fees and supplies.
Income-based poverty metrics fail to capture the cumulative vulnerabilities that impact families long before they meet official poverty definitions.
Adopting a Multidimensional Poverty Index (MPI) is essential to detect clustered deprivations—such as lack of schooling, healthcare, and sanitation—and provide preventive, timely support.
Data from the 2025 National Socio-Economic Survey (Susenas) highlights significant gaps in essential services:
Households with at least one out-of-school child: 12.0%
Lack of access to health insurance: 7.7%
Inadequate safe water access: 13.6%
Inadequate sanitation access: 19.7%
Lack of access to the power grid: 12.7%
Child labor involvement: 7.5%
Lack of preschool access: 9.9%
The Data Usage Gap
While Indonesia collects detailed socio-economic data, it is primarily used for administrative classification and monitoring rather than proactive, preventive social intervention.
Essential identifiers, such as birth registration, are often captured but not leveraged effectively to prevent the exclusion of children from social protection programs.
Government implementation remains siloed, with education, health, and housing policies often failing to address the interconnected nature of family deprivation.
Policy Implications and Future Direction
The MPI should be used as a bridge to align national data with local community realities, enabling village-level planning that addresses clustered needs.
Transitioning toward a "people’s economy" (ekonomi kerakyatan) requires shifting the focus of development from aggregate growth statistics to ensuring dignity and citizenship rights for all.
Proactive development approaches must prioritize removing barriers—such as the inability to afford school materials—to ensure that poverty does not dictate a child’s future potential.
