Poverty and Vulnerability in Indonesia Before and After the Economic Crisis

It is well known that the economic crisis in Indonesia has caused the poverty rate to increase significantly. The present study finds, not only that the poverty rate increased significantly, but also that much of the increase was due to a large increase in the chronic poor category (i.e. the poor who have expected consumption below the poverty line and most likely will stay poor in the near future). Furthermore, the present study also finds that the proportion of households that have high vulnerability to poverty has more than doubled since the economic crisis. As a result, the proportion of the total vulnerable group (the current poor plus the high vulnerability group) has jumped from less than one‐fifth of the population before the crisis to more than one‐third after the crisis.