Coordinating Minister for Human Development and Culture (PMK) Muhadjir Effendy said many people would be surprised to be classified as poor. These people are called shocked poor Muhadjir, because they were initially not poor, but due to effects of the coronavirus have become poor.
What is the potential number of people who become classified as surprised poor? Executive Director of the Indonesian Center of Reform on Economics (Core) Mohammad Faisal said that many people in the near-poor category were threatened to cross the poverty line because due to the effects of Covid-19. He estimated there were 67 million people potentially effected.
“Those who are under poverty like are around 25 million, so the problem is for those at the poverty line numbering 67 million. When there are economic shocks they are vulnerable to crossing the poverty line,” Faisal told AFP on Monday (11/5).
In research conducted by Core Indonesia, Faisal elaborated that up to the Q2 of 2020 or until June, he predicted there would be 5.1 – 12.3 million people who plunged into the abyss of poverty.
Meanwhile, up to March 2020, the poverty rate in Indonesia was at 9.4% or reaching 25.1 million people in total population on the poverty line.
The predictions are divided into 3 schemes. In the most optimistic, there will be an additional 5.1 million people who cross the poverty line, increasing Indonesia’s poverty rate to 11.7% or around 30.8 million people in total poor population.