Observers Of The Value Of Poverty Increase In North Sumatra Affected By Inflation

Illustration (Photo: Doc. Antara)

JAKARTA - Economic observer from the University of North Sumatra (USU) Wahyu Ario Pratomo said the increase in the poverty line in North Sumatra was influenced by inflation which caused an increase in commodity prices, both food and non-food.

"If the price goes up, it can be ascertained that the poverty line will rise," Wahyu said as quoted by ANTARA, Thursday, August 3.

According to him, what needs to be highlighted is the commodities most consumed by the community so that the poverty line rises.

In March 2023, rice and cigarettes were the main causes of the increase in the poverty line per capita, based on data from the Central Statistics Agency (BPS) of North Sumatra.

Rice and cigarettes, classified in food, have the largest role in increasing the North Sumatra poverty line to IDR 602,999 per capita per month in March 2023 from IDR 592,025 per capita per month in September 2022.

Rice is indeed needed by the community because it becomes a staple food. However, not with cigarettes.

Cigarettes, according to Wahyu, have long been closely related to poverty. However, consumption is difficult to control.

"To inhibit cigarette consumption, the government increases excise rates. As a result, the demand for cigarettes has only decreased slightly because the Indonesian people tend to consider cigarettes as a necessity," said the man who is also a lecturer at the USU Faculty of Economics and Business.

The North Sumatra BPS stated that in March 2023, the highest number of rice was 20.76 percent of the poverty line in urban areas, while in rural areas it was 29.79 percent.

After rice, filter kretek cigarettes have the second most impact on the poverty line in urban areas (12.63 percent) and rural areas (9.94 percent).

In terms of region, the poverty line in urban and rural areas of North Sumatra increased in March 2023. In urban areas, the poverty line is IDR 626,782 per capita per month (up 1.88 percent compared to the previous six months) and in rural areas IDR 573,500 per capita per month (up 1.72 percent compared to September 2022).

The household poverty line in North Sumatra in September 2022-March 2023 also increased, from IDR 2,865,401 per household per month in September 2022 to IDR 3,280,315 per household per month in March 2023.