Developing a Poverty Map for Indonesia: An Initiatory Work in Three Provinces (Part I: Technical Report)


Part I: Technical Report

Asep Suryahadi, Wenefrida Widyanti, Daniel Perwira, Sudarno Sumarto (SMERU)
Chris Elbers (Vrije University, Amsterdam)
Menno Pradhan (World Bank)

Abstract

This report presents the results of a pilot study to apply a recently developed technique for obtaining high-resolution poverty maps, using data from three provinces in Indonesia: Jakarta, East Java, and East Kalimantan. The purpose of this
pilot study is to try out the applicability of the poverty mapping method given the available data in Indonesia and, furthermore, to test the feasibility of developing a poverty map for the whole country at various administrative levels (province, district, subdistrict, and village). The report is consisted of two parts. Part I is a technical report describing the steps that have been implemented in the exercise and discussions on the results. Part II presents the results of the exercise in the forms of tables of poverty and inequality point estimates and standard errors at the provincial, district, subdistrict, and village levels for the three provinces. The results indicate that the currently available data in Indonesia are sufficient to develop a poverty map with reasonable standard errors, at least for the provincial, district, and subdistrict levels. Meanwhile, the results for village level need to be used with caution as the standard errors of the estimates for a large fraction of the villages are relatively large. Overall, the results appear to support the extension of the method’s application to the rest of the country.