Indonesia Partners With China to Cut Poverty Above 10%

Indonesia is teaming up with the country that lifted 800 million people out of poverty over five decades, hoping to replicate that success for its own citizens.

Deputy Minister Ahmad Riza Patria recently joined global leaders in Beijing for a groundbreaking poverty reduction summit. Indonesia co-chaired the Global Partnership for Poverty Alleviation and Development alongside Brazil, South Africa, Pakistan, Ivory Coast, and Uzbekistan.

The collaboration goes beyond theory. Every year, Indonesian village heads travel to China to study poverty reduction techniques firsthand. Last year 25 leaders made the journey, and this year that number grew to 27.

"We must learn to quickly address issues regarding poverty since they are complex," Patria explained. With Indonesia's poverty rate still hovering above 10 percent, the government is implementing multiple programs to reach struggling communities.

President Prabowo Subianto has launched initiatives targeting rural areas where poverty hits hardest. The Free Nutritious Meals program ensures children get proper nutrition. The Red and White Fisherfolk Village and Village Cooperative programs create economic opportunities in coastal communities.

Village-Owned Enterprises are bringing commerce directly to remote areas. "The economy will be flowing across villages with these programs, which ultimately improves productivity and the welfare of rural communities," Patria said.

The Ripple Effect

China's track record speaks volumes. Between 1970 and 2021, the country helped 800 million people escape poverty. From 2013 to 2020 alone, nearly 99 million rural residents climbed out of extreme poverty, averaging more than 10 million people yearly.

That success led China to declare "complete victory" over extreme poverty in February 2021, removing 832 districts and 128,000 villages from impoverished status. They achieved the UN's 2030 poverty reduction goal a full decade early.

Indonesia is already seeing results from its efforts. Recent data shows a decrease in extreme poverty, with about 0.48 percent of the population moving up the economic ladder. The city of Solo saw its poverty rate drop from 8.31 percent to 7.69 percent.

The partnership isn't one-sided. Chinese representatives also visit Indonesia for knowledge sharing, creating a two-way exchange of ideas and solutions.

With 53 countries and nine international organizations now part of the global poverty reduction forum, Indonesia is tapping into a worldwide network of proven strategies. For millions of Indonesians struggling to make ends meet, help is on the way.