Fact Check: Did World Bank Rank Indonesia as World’s Second-Poorest Country?
A widely circulated claim on social media platforms – including Instagram, Threads, and Facebook – alleges that Indonesia ranks as the second-poorest nation globally, citing data purportedly from the World Bank. The posts feature an infographic ranking Zimbabwe first with 84.2 percent poverty, Indonesia second at 60.3 percent, and El Salvador third at 25.1 percent, referencing the World Bank’s Global Poverty Lines 2025 or Macro Poverty Outlook 2025 reports.
The Viral Claim Debunked
Investigations by Tempo have revealed this claim to be false. The World Bank does not publish a ranking of the world’s poorest countries. While the World Bank’s April 2025 Macro Poverty Outlook did report that over 60.3 percent of Indonesia’s population – approximately 171.8 million people – lived below a poverty line of US$8.30 per day (PPP), or roughly Rp1,512,000 per capita per month, this figure is specific to Indonesia’s classification as an upper-middle-income country.
World Bank Methodology
The World Bank categorizes nations based on income – low-income, lower-middle-income, and upper-middle-income – and establishes poverty lines accordingly. The June 2025 update to Global Poverty Lines established a new international poverty line of US$3.00 per person per day, replacing the previous standard of US$2.15.
Expert Confirmation
Wisnu Setiadi Nugroho, Coordinator of the Poverty Alleviation and Inequality Study Division at Gadjah Mada University, confirmed that the World Bank has never released data supporting Indonesia’s ranking as the second-poorest country. He stated that this ranking is absent from official documents, including the Global Poverty Line, the Poverty and Inequality Platform (PIP), and the Macro Poverty Outlook.
Esther Sri Astuti, Executive Director of the Institute for Development of Economics and Finance (INDEF), echoed this sentiment, emphasizing that poverty metrics should extend beyond per capita income to include multidimensional aspects like education, health, and living standards.
According to the World Bank, its global poverty standards are designed for international comparisons, not domestic policy. Indonesia, recently classified as an upper-middle-income country with a GNI per capita of US$4,870 in 2023, maintains poverty rates significantly lower than those in Sub-Saharan Africa.
The World’s Poorest Nations
Citing World Data, the ten poorest countries globally are located in Africa, with Central African Republic ranked first, followed by Burundi, Mozambique, Sudan, and Somalia, based on 2024 gross national income (GNI).
Frequently Asked Questions
Is the World Bank data on Indonesia’s poverty rate inaccurate?
The World Bank data isn’t inaccurate, but it’s based on a different standard than Indonesia’s national poverty line. The World Bank uses a PPP-adjusted international poverty line of US$8.30 per day for upper-middle-income countries like Indonesia, while BPS uses a threshold of Rp595,242 per capita per month.
What is Purchasing Power Parity (PPP)?
PPP is a method used to convert different currencies into a comparable unit by accounting for price level variations across nations. It ensures that currency values are compared based on actual purchasing power, rather than exchange rates.
Does the World Bank plan to release a ranking of the poorest countries?
No, the World Bank has stated it does not and will not release a ranking of the world’s poorest countries. It focuses on categorizing nations by income level and establishing poverty lines for each category.
Given the complexities of measuring poverty and the varying standards used by different organizations, how can individuals critically evaluate information about global economic conditions?