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JAKARTA - Indonesia's poverty rate dropped 1.3 percentage point this year from 15.4 per cent last year owing to stable inflation and higher wages, the national bureau of statistics said Wednesday. According to a survey conducted in March, 32.5 million Indonesians live under the poverty line, or 14.15 per cent of the country's population, the bureau said.
In Indonesia, a person is categorized as poor if he or she lives on 262,000 rupiah (25.7 dollars) a month or less. The World Bank estimates that around half of Indonesia's population of 220 million live on less than two dollars a day. Poverty is a key issue in next week's presidential election in the world's fourth most populous country.
Incumbent President Susilo Bambang Yudhoyono is seeking reelection and he has touted sound economic management as one of his achievements. Yudhoyono's closest rival, former president Megawati Sukarnoputri, has accused the current government of exacerbating poverty by adopting 'neoliberal' economic policies. Inflation was just 3.65 per cent in June from a year ago, its slowest in nine years, the statistics bureau said.
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