Poverty in Indonesia: a profile
Chernichovsky, D.; Meesook, O.A.
World Bank Staff Working Paper, International Bank for Reconstruction and Development 671: 56
1984
Document Number: 387050
Using data from the National Socioeconomic Survey for 1978, a poverty profile of Indonesia is developed classifying households into poor, better-off and rich according to per caput consumption, disaggregated into urban and rural sectors. Defining 'the poor' as the two lowest quantities, the urban incidence of poverty was found to be 14% compared with 42% for rural areas. The incidence of poverty is considered lower for the Outer Islands than for Java. The poor were found to have the largest families and a larger number of members in the labour force, but each labour force member has a larger number of dependants to support. There is a strongly inverse relationship between poverty and the level of education of the household head. Multiple jobs and a high job turnover are characteristics of the poor, as is the likelihood of being dependent on agriculture. There is a positive corellation between control of the land and levels of income in rural areas. Consumption patterns by income level confirm Engels Law, and within the food category the poor spend a larger proportion of their incomes on carbohydrates. Income distribution directly affects the pattern of nutrition. Housing structure and the availability of water and electricity are adversely affected by poverty, a smaller proportion of poor children attend school beyond primary level, and the poor receive less formal health care.