Help Build a School for Underprivileged Children

The public debate on poverty in Indonesia has resurfaced following the release of data from Statistics Indonesia (BPS) and the World Bank that appear contradictory. According to the World Bank's Macro Poverty Outlook, more than 60.3% of Indonesia's population—approximately 171.8 million people—live below the poverty line when measured by standards for upper-middle-income countries. In contrast, BPS reported that as of September 2024, the national poverty rate stood at only 8.57% (24.06 million people).

 his stark difference is not a matter of data inconsistency; rather, it reflects distinct methodologies, purposes, and thresholds used to define what it means to be "poor."

The BPS Methodology: The Cost of Basic Needs Approach

BPS measures poverty using the Cost of Basic Needs (CBN) approach. Under this method, an individual is classified as poor if their consumption expenditure is insufficient to meet the minimum basic requirements, which consist of a food basket equivalent to 2,100 kilocalories per day and essential non-food needs, such as housing and health.

 As of September 2024, the national Poverty Line was set at an average of IDR 595,243 per capita per month (approximately IDR 19,800 per day). This standard is tailored to Indonesia's local socio-economic context and fiscal capacity, primarily used for targeting domestic social assistance (Bansos).

The World Bank Approach: Global Living Standards

The World Bank applies International Poverty Lines based on Purchasing Power Parity (PPP) to enable cross-country comparisons. As an upper-middle-income country, Indonesia is benchmarked against a threshold of USD 6.85 per capita per day (2021 PPP). It is crucial to note that USD 6.85 in PPP terms represents the purchasing power equivalent of that amount in the United States. In Indonesia, this converts to approximately IDR 106,000 to IDR 129,000 per day. According to this global benchmark, 60.3% of the population falls below the poverty line, highlighting a vast segment of the "near-poor"—those who live just above the national poverty line but remain highly vulnerable to economic shocks.

Why do we Need Your Help?

The reality that over 170 million Indonesians live in economic vulnerability confirms that this challenge cannot be solved by the government alone. It requires broad participation and a focus on long-term structural solutions. Here is why your involvement is crucial:

1. Breaking the Cycle Through Education: With such high poverty rates compared to global standards, education remains the most effective tool for alleviating poverty. Education provides the only sustainable path for the next generation to move beyond low-productivity sectors.
2. Empowering Youth through Entrepreneurship and Skills: There is an urgent need to equip the younger generation with specialized skills and an entrepreneurial mindset. By fostering entrepreneurship, we provide young people with the opportunity to increase their income and break free from the trap of economic hardship.
3. Closing the Inequality Gap: There is a significant disparity in educational access and quality between the wealthy and the poor, as well as between different regions in Indonesia. Bridging this gap is essential to ensure that progress is not a privilege for the few but a right for all.

How Can You Help Us?

You can help us bring our vision to life. We are working to build a modern vocational school specifically designed to provide high-quality, relevant skills and entrepreneurship training to vulnerable communities. This institution will serve as a bridge, connecting marginalized youth to the modern economy and giving them the tools they need to build a better future.

By supporting this initiative, you are not just making a donation; you are investing in the structural transformation of Indonesia's future. Together, we can ensure that economic growth is inclusive and that every Indonesian has the opportunity to thrive.

Poverty in Indonesia is closely linked to two major groups: farmers and rural communities. The majority of poor households in the country still depend on agriculture as their primary source of livelihood. Data from Statistics Indonesia (BPS) shows that 51.33% of poor households relied on agriculture as their main income source in March 2021, while 29.69% depended on other sectors, and 12.90% had no employment at all. Although agriculture is often portrayed as the backbone of national food security, its reality reveals deep vulnerability for farmers themselves. Food sovereignty is frequently promoted as a national slogan, yet it has not translated into economic security for farming households. Persistent poverty among farmers has driven many rural families to abandon agriculture altogether, often without alleviating their poverty. Amid high levels of poverty and unemployment, agriculture has not yet become a viable solution for most young people.

Indonesia is also facing a serious crisis in farmer regeneration. National statistics show a continuous decline in the number of farmers despite Indonesia’s agrarian identity. In West Java, for example, the largest proportion of farmers is aged 45–49, while those aged 30–44 account for less than a quarter of the total. Young farmers under the age of 30 remain a very small minority.

This trend is reinforced by earlier research, which found that fewer than half of farmers’ children are willing to continue farming, while many explicitly reject agriculture as a future livelihood. The country lost 5.1 million farmers between 2003 and 2013, and projections suggest that if this trend continues, Indonesia could lose most of its farmers within a few decades. Low income is a key driver of this crisis. On average, farmers earned around USD 3.81 per day, which is significantly lower than the earnings in the construction or urban sectors. This stark income gap makes agriculture an increasingly irrational choice for young people.

Enabling Young People to Practice Modern and Ecological Agriculture

Addressing poverty in agriculture is a complex task. Farmers face multiple structural challenges, including limited access to capital and markets, outdated production technologies, small landholdings, and environmentally damaging practices.

Punthuk Sewu addresses these challenges through a distinct educational approach. First, we provide applied, science-based skills training oriented toward environmental conservation. Agricultural practices at Punthuk Sewu are grounded in circular economy principles, emphasizing farmer independence from costly and environmentally harmful external inputs. Participants learn to produce their own fertilizers and natural pesticides—inputs that are both economically valuable and ecologically sustainable. Permaculture serves as a foundation for building resilient and regenerative farming ecosystems.

Second, we encourage young people to manage agriculture efficiently and innovatively, using scientific methods to identify viable economic opportunities for certain commodities. This approach reduces production costs—such as those associated with organic farming—while increasing the value of agricultural products. By strengthening market awareness and efficiency, young farmers can enter the agriculture sector without the continued worry of unsold produce or financial loss.

Third, we place strong emphasis on scientific reasoning, like experimental and laboratory tests. In a context where formal education often fails to nurture critical and analytical thinking, Punthuk Sewu introduces science as a practical tool within agriculture and livestock management and practices. These skills not only benefit participants within farming but also equip them with transferable competencies applicable beyond the agricultural sector.

Why Support Us?

Every contribution through GlobalGiving helps us strengthen educational facilities and improve the quality of our learning services. Your support enables young people from farming families to develop their potential by building upon the resources and knowledge they already possess. Quality education remains one of the most powerful investments in breaking the cycle of poverty.

What We Plan Next

We aim to develop a certified vocational education area that allows more young people to access affordable—or, for some groups, free—skills training. These competencies will increase young people’s employability while also supporting those who choose to build independent, community-based enterprises.

By investing in young people today, we are helping to secure the future of sustainable agriculture and rural livelihoods in Indonesia.