EconomyThe Number of Poor People in Bali Increases by...

The Number of Poor People in Bali Increases by 31.73 Thousand People in 6 Months

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The number of poor people in urban and rural areas in Bali increased during the Covid-19 Pandemic.

As stated by the Head of the Central Statistics Agency (BPS) of Bali Province, Hanif Yahya, the number of poor people in Bali in September 2020 was recorded at around 196.92 thousand people.

Even though in March 2020 the figure was around 165.19 thousand people.

This means that within six months, the poverty rate has increased by 31.73 thousand people.

Or in percentage terms, the poor population in Bali in September 2020 was recorded at 4.45 percent, up 0.67 percentage points compared to the position in March 2020 which was recorded at 3.78 percent.

For urban areas separately, during the period March to September 2020, the percentage of poor people was recorded to have increased from 3.33 percent in March 2020 to 4.04 percent in September 2020.

For rural areas, the percentage of poor people has increased from 4.78 percent in March 2020 to 5.40 percent in September 2020.

“Meanwhile, the poverty line is recorded to have increased by around 1.94 percent, from Rp.429,834.00 per capita per month in March 2020 to Rp.438,167.00 per capita per month in September 2020,” he said in a press release on Wednesday, February 17, 2021.

The Poverty Depth Index (P1) in Bali in September 2020 was recorded at 0.610, an increase of 0.086 points compared to March 2020. The Poverty Severity Index (P2) increased by 0.02 points from 0.103 in March 2020 to 0.123 in September 2020.

Income inequality in Bali, which is described by the Gini Ratio, has not changed from the conditions in March 2020, which was recorded at 0.369 in September 2020.

Hanif Yahya explained that the poverty calculation methodology was implemented by the Central Statistics Agency, namely by using the concept of the ability to meet basic needs or a basic needs approach. And with this approach poverty is seen as an economic inability to meet basic food and non-food needs as measured by the poverty line.

“The Food Poverty Line is the minimum food expenditure value equivalent to 2100 kilocalories per capita per day. Meanwhile, the Non-Food Poverty Line is the minimum expenditure value for housing, clothing, education, health, and other non-food staples,” he said.

Meanwhile, the definition of the poor population is people who have an average per capita expenditure per month below the poverty line.

Hanif Yahya also explained that there were several factors related to the Poverty Level in Bali in September 2020.

The first factor is the Covid-19 pandemic which has an impact on the behavior, economic activity, and income of the population so that it has an impact on the addition of the poor.

The next factor is that the tourism sector has been hit, where Bali, whose economy is based on the tourism sector, has been hit hard by the Covid-19 outbreak.

The third factor is the contraction in economic growth in the third quarter of 2020.

YOY economic growth in the third quarter of 2020 contracted by -12.28 percent while Q to Q economic growth was recorded to grow by 1.66 percent.

Many workers are laid off by layoffs, which results in the difficulty of the community getting an income.

The third factor is the contraction in economic growth in the third quarter of 2020.

YOY economic growth in the third quarter of 2020 contracted by -12.28 percent while Q to Q economic growth was recorded to grow by 1.66 percent.

The fourth factor related to the poverty rate in Bali in September 2020 is that household consumption growth has contracted.

Household consumption expenditure in September 2020 YoY contracted by -4.82 percent even though in Q to Q it grew by 1.87.

The next factor is inflation.

The value of cumulative inflation from March 2020 to September 2020 was recorded to experience deflation of -1.08.

This is in line with the condition of monthly inflation in Denpasar which recorded deflation of -0.16 in September 2020 conditions.

Then the next factor is the Open Unemployment Rate, where the Rate of Bali Province in August 2020 was recorded at 5.63 percent, which increased quite high when compared to the conditions in February 2020 which was recorded at 1.21 percent.

Then the next factor is the Farmers Exchange Rate, where in September 2020 it was recorded at 93.60, apart from this figure is still below 100, this figure is also lower than the conditions in March 2020 which were recorded at 97.10.

And the last factor according to Hanif Yahya is the Government’s Social Assistance, both the Central and Regional Governments, greatly assisting the population during the pandemic period, especially those in the lower layers.

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