Variables, Dimensions, and Indicators Important to Develop the Multidimensional Poverty Line Measurement in Indonesia

Abstract

Criticism on the use of the income/expenditure poverty line to estimate the number of the poor in Indonesia leads to questioning the use of the multidimensional poverty line (MPL) measurement. While current research on the defining variables, dimensions, and indicators to develop the MPL measurement in Indonesia was not based on direct views of the poor and the non-poor household heads, we complement this research gap by examining it based on direct views of the poor and the non-poor household heads. Methods used to collect the empirical data were conducted in four stages. The first stage was by organizing a Focus Group Discussion with twenty-five participants. The second stage was by conducting a pilot for the main survey on thirty poor and non-poor household heads. The third stage was by distributing the main survey questionnaire to 274 non-poor and 315 poor household head respondents in six representative locations in Indonesia. The fourth stage was by taking in-depth interviews with 8–12 key informants in each survey location. These data were further analysed by employing the qualitative technique. The results confirmed that the poor and the non-poor household head respondents, and the interviewees under the survey viewed the MPL measurement as a comprehensive and better poverty measurement. However, dimensions and indicators that were viewed to be important in developing the MPL measurement were mostly in the groups of three variables. These three variables were capability, empowerment, and opportunity. These three variables should be no hierarchy of importance in developing the MPL measurement as well as in formulating policy and programs to eradicate the incidence of poverty in Indonesia.