The Indonesian government issued Presidential Instruction (Inpres) No. 8 of 2025 on the Eradication and Elimination of Extreme Poverty on Mar. 27, 2025.
The instruction outlines funding sources to optimize poverty alleviation efforts, including the State Budget (APBN), Regional Budgets (APBD), Village Funds, and other available resources.
Responding to the new instruction, Hempri Suyatna, a social development and welfare expert from the UGM Faculty of Social and Political Sciences, emphasized that poverty eradication cannot rely solely on normative regulations. Instead, it must be backed by effective implementation that addresses core issues in the field.
“The substance of this instruction is good, but what matters more is how it is implemented. It should not remain merely a written regulation,” he said on Tuesday (Apr. 29).
Suyatna noted that a significant challenge lies in the differing perceptions among stakeholders regarding the concepts of poverty and welfare. He pointed out discrepancies in poverty data and indicators from Statistics Indonesia (BPS) and the World Bank. Additionally, disagreements persist among government institutions, the private sector, and the public regarding who qualifies as poor or prosperous.
“Perhaps the inability to solve poverty issues stems from decision-makers not sharing the same perception of what poverty and welfare mean, resulting in mistargeted programs,” he observed.
He also highlighted the three primary strategies outlined in the instruction: reducing expenditure burdens, increasing incomes, and addressing poverty pockets. While acknowledging the strengths of this framework, Suyatna stressed the need to reinforce the social dimension of poverty eradication efforts.
“Poverty should not be viewed only through an economic lens. We possess strong social capital, such as cooperation and community solidarity, which should be optimized and empowered, especially considering our society’s high generosity and religiosity indices,” he explained.
In terms of implementation, Suyatna underlined the importance of flexible approaches tailored to each region. He emphasized that while the instruction should serve as a general guideline, its application must adapt to regional potentials and specific needs.
“If implemented uniformly without considering local characteristics, it risks being ineffective. Development models should vary according to each region’s strengths,” he stated.
He also identified weak inter-agency coordination as a recurring obstacle in poverty eradication efforts. Overlapping programs remain common, whether between government agencies, between government and the private sector, or between government and society.
“We already have Village-Owned Enterprises (BUMDes) and village cooperatives, yet new initiatives like the ‘Red and White Cooperatives’ are still being introduced. This highlights the distance we still have to travel to achieve ideal collaboration and coordination. If every regime change brings a policy overhaul, we will keep restarting from scratch. It would be better to improve and strengthen what already exists rather than replace it,” he remarked.
In the context of the government’s current push for budget efficiency, Suyatna stressed the importance of equitable austerity measures across all levels of government.
“If regional governments are asked to cut spending, the central government must do the same. Justice must prevail,” he said.
In conclusion, Suyatna urged the government to develop a comprehensive and long-term master plan for poverty eradication. While the National Medium-Term Development Plan (RPJMN) exists, he called for a more detailed and targeted blueprint to ensure the sustainability of poverty alleviation efforts.
“The best form of control comes from the community itself. Strong oversight from the village and sub-district levels can quickly detect and correct mistargeted programs,” he concluded.
Author: Bolivia Rahmawati
Editor: Gusti Grehenson
Post-editor: Afifudin Baliya
Photographer: Antara/Aprillio Akbar