Poverty in Indonesia Fell to the Lowest Level Ever in March 2018

Poverty in Indonesia declined to the lowest level ever in March 2018 (Indonesia's Central
Statistics Agency, or BPS, releases poverty figures twice per year, covering the months March and
September). Based on the latest data, Indonesia's relative poverty figure fell to 9.82 percent of the
total population. Thus, 25.95 million Indonesians are now categorized as poor. Previously, in
September 2017, Indonesia's poverty rate was 10.12 percent, or 26.58 million poor people in
absolute terms. BPS Head Suhariyanto said the latest poverty statistics are the best in Indonesian
history because for the first time ever the nation's relative poverty rate touched a single-digit figure.
However, he added that there is no time for complacency because there remain 25.95 million
people who live below the national poverty line. This is a large number.

Moreover, there are dozens of millions Indonesians who live just above the poverty line,
implying that a relatively minor peak in inflation could push these people (back) into full-blown
poverty. Therefore, there remains plenty of homework to be completed by the government.
However, as we noted several times before, it has become increasingly difficult for the government
to lift this remaining group out of poverty (especially now that economic growth has been stagnant
around the 5 percent level).

From 1998 - when the poverty rate nearly touched 25 percent - to 2012 Indonesia's poverty
numbers fell markedly because most of these people had been living slightly below the poverty line
(and therefore it required fewer efforts to lift them out of poverty). After 2012 poverty continued to
slide in Indonesia but at a slower level because it is now the bottom base of Indonesia's poor people
who need to be alleviated. This is more complicated and therefore results in slowing rates of poverty
reduction.

There were two factors that blocked a faster rate of poverty reduction in March 2018
according to Suhariyanto: (1) rising prices of rice and (2) very modest growth in Farmers' Terms of
Trade (FTT). Rice is the key staple crop for Indonesians, hence a significant portion of poor peoples'
disposable income goes to the purchase of rice. In times of rising rice prices, this group will feel
growing financial pressures. Therefore, it is important for the government to guard its rice social
assistance program (called Rastra). Earlier there had been reports about sluggish distribution of rice
under this Rastra program.

The FTT is the ratio of prices received by local farmers to the price paid by farmers. This ratio
simply reflects the purchasing power of farmers. According to the latest data, FTT rose by a very
modest 0.37 percent month-on-month (m/m) to 101.99 in May 2018.

Meanwhile, Indonesia's Gini ratio, which measures income distribution (in)equality,

improved slightly from 0.391 in September 2017 to 0.389 in March 2018 (a Gini coefficient of zero
expresses perfect equality, while a coefficient of 1.0 expresses perfect inequality). A more thorough
analysis of Indonesia's latest poverty data will be available in the July 2018 edition of Indonesia
Investments' research report.

https://www.indonesia-investments.com/news/news-columns/poverty-in-indonesia-fell-to-the-lowest-level-
ever-in-march-2018/item8899
 Market

Market is one of a variety of systems, institutions, procedures, social relations and

infrastructures in which businesses sell goods, services and labor for the people in exchange for
money. Goods and services sold to use as legal tender fiat money. This activity is part of the
economy. It is an arrangement that allows buyers and sellers to exchange items. Competition is very
important in the market, and separate from the trading market. Two people may do the trade, but it
takes at least three people to have a market, so there is competition on at least one of the two sides.
Markets vary in size, range, geographic scale, location, type and variety of the human community, as
well as the type of goods and services traded. Some examples include local farmers market held in
the town square or parking lots, shopping centers and shopping malls, international currency and
commodity markets, the law creating such a market for pollution permits, and illegal markets like
the market for illicit drugs.

In mainstream economics, the concept of the market is any structure that allows buyers and
sellers to exchange any type of goods, services and information. Exchange of goods or services for
money is a transaction. Market participants consist of all buyers and sellers are both affecting its
price. This influence is a major study of economics and has spawned several theories and models of
basic market forces of supply and demand. There are two roles in the market, buyers and sellers.
Markets facilitate trade and allow the distribution and allocation of resources in the community.
Markets allow all items to be evaluated and traded prices. An emerging market is more or less
spontaneous or deliberately constructed by human interaction to allow the exchange of rights
(ownership) services and goods.

https://www.google.com/amp/s/dianapitasari.wordpress.com/2014/11/22/artikel-bahasa-inggris-tentang-
ekonomi-dan-terjemahannya/amp-