This is Step by Step Understanding Macro Poverty Indicators

Whoever we are, it's okay to understand poverty with knowledge, understanding, even indicators that we create ourselves. But when we talk about poverty as an official statistic, then the main requirement is a clear-based and comparable approach across time and between regions. These are some practical steps to understand macro poverty indicators.

1. First, it is necessary to agree that the poverty indicators that will be discussed are indicators produced and officially released by BPS as a public body.

2. The poverty indicator produced by BPS is referred to as macro poverty. Why? Because the results are statistics which are actually the best estimates for the macro condition of a population based on the sample of the National Socio-Economic Survey (Susenas). The population in question can be district/city, province, and state.

3. Because it is a statistic, the characteristic of macro poverty is that it will never be able to provide data on who and where the addresses of the percentages or thousands of poor people that have been released by BPS.

4. Data related to who and where the poor address the poor are referred to as micro poverty data. This is not the domain of BPS, this is the domain of the Ministry of Social Affairs / Social Service in the regions.

5. We return to macro poverty indicators. Actually, there are three macro poverty indicators, namely Percentage of Poor Population (P0), Poverty Depth Level (P1), and Poverty Severity Level (P2). But the most popular is P0.

6. Percentage of poor people (P0) is the ratio of the number of poor people to the total population in an area. From this simple formula, the first step is to calculate the number of poor people. This means that there must be a measure to determine who is called a poor person.

7. This measure is called the Poverty Line (GK); as if like a dividing line that distinguishes between poor people and not.

Quantitatively, this GK is the minimum value of expenditure (not income) of the population per capita per month; needed to meet basic needs. Basic needs are the key words; so clearly, GK will be different from UMR/UMP.

8. Basic needs include food and non-food. Food needs use a consumption limit that can produce energy equivalent to 2100kcal/capita/day. Meanwhile, for non-food needs, the minimum limit is used for a number of housing commodities, clothing, health, education, and other non-food basic needs.

9. After the GK is obtained, the poor are determined as people who have per capita expenditure per month below the Poverty Line (GK). Expenditure per capita per month is the total household expenditure in a month divided by the number of household members in the household. (Jambi/Social Data)