Statistics Indonesia: Households Relying on Agriculture Face Poverty

TEMPO.CO, Jakarta - The latest data from Statistics Indonesia (BPS) related to people’s main sources of income classifies the majority of households facing poverty in 2020 are the ones relying on agriculture as their main source of income.

Head of Statistics Indonesia Kecuk Suhariyanto on Wednesday’s webinar held by INDEF stated that 46.30 percent of impoverished households rely on agriculture as their main source of income. It followed by households relying on income from the industrial sector with 6.58 percent, and another 32.10 percent of poor households rely on various types of sectors. 

“The main source of income from households facing poverty in Indonesia is agriculture. This is a homework that we need to take a close look about,” said the BPS Head on Wednesday, February 18.

BPS recorded the number of people that became poor after the pandemic hit in 2020 had increased by 2.76 million people, unemployment also increased by 2.67 million people which has created a shift in workforces from cities to rural areas. Meanwhile, the number of people working in agriculture rising to 29.76 percent of the total workforce distribution. 

Some 29.76 percent of the workforce rely on the sector that contributes 13.7 percent of the GDP, which Kecuk fears could be a problem “When the GDP ‘share’ is only 13 percent and must accommodate 29.76 percent, the load carried by this sector is unimaginable. It must be noted that the productivity of agriculture will also drop.”

Statistics Indonesia recorded that the agriculture sector - one of seven sectors recording positive growth - throughout 2020 managed to grow positive by 1.75 percent all while Indonesia’s economic growth had contracted by 2.07 percent. 

Read: Jokowi Eyes to End Extreme Poverty by 2024

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