Indonesia: From Low Income, High Poverty to High-Income, No Poverty?

In this video, Co-Director of King’s International Development Institute, Andy Sumner examines Indonesia’s remarkable growth and speculates on what may be possible by 2025.

The video features discussions on trends and patterns of poverty reduction by using the international poverty lines ($1.25 which is now close to the National Poverty Line, as well as $2 and we add $10/day PPP). Sumner use a new model of growth, inequality and poverty for historic estimates and project forward poverty reduction patterns by various growth and inequality trends in order to ascertain the range of possible future levels for poverty.

In sum, it is plausible that Indonesia could be a high-income country by 2025 with little $1.25 or $2 poverty. This is though an optimistic view based on strong economic growth and favourable movements in distribution. Slower growth and/or rising inequality would, of course, however delay the end of poverty. The purpose of such projections is merely to illustrate what is possible.

King's College London - King’s International Development Institute 2013

King’s International Development Institute (IDI) focuses on “emerging economies,” both to explore the sources of their success as well as understand the major development challenges they continue to face. The fast growing and changing societies in Africa, Asia, Latin America, and the Middle East raise new questions about national development and promoting sustainable and equitable growth. In turn, they offer vital lessons for each other, for poorer economies, and even for the developed West.