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.

Indonesia’s Multidimensional Deprivation Statistics

• 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.