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Structural poverty: A form of persistent inequality in Indonesia

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Tempo - June 15, 2025

Ananda Ridho Sulistya, Jakarta – Structural poverty is one of the forms of poverty that exists in Indonesia. Structural poverty is the poverty caused by the imbalance of access of a society to opportunities for a more decent life.

Furthermore, structural poverty is a form of poverty caused by systemic inequality in the social, economic, and political structure of a society. Unlike temporary poverty, which may arise from specific events such as natural disasters, job loss, or economic crises, structural poverty is more profound and persistent due to the rooted patterns of injustice within public institutions and policies.

As reported by easysociology.com and mattbruenig.com, structural poverty fundamentally occurs not solely due to lack of individual effort, but because certain individuals or social groups face systemic barriers that hinder their escape from poverty. These barriers could include limited access to quality education, adequate healthcare services, fair job opportunities, land and natural resources, or even legal justice.

All these factors are interconnected and form a system that is difficult to penetrate, especially by historically marginalized groups such as small-scale farmers, informal laborers, indigenous communities, or inhabitants of remote areas.

For example, a child from a poor family in rural areas might not have access to decent schools due to distance, high costs, or poor quality of education. As they grow into adulthood, they struggle to compete in the formal job market that demands high skills.

Consequently, they are likely to be trapped in low-income informal jobs, without adequate social protection. This cycle then repeats in the next generation, as their children face similar conditions. This is what is referred to as the cycle of structural poverty.

Structural poverty can also be exacerbated by government policies that do not favor vulnerable groups. For instance, economic development excessively concentrated in major cities can cause rural areas to be left behind. Similarly, a regressive tax system or subsidies enjoyed more by the upper middle class will deepen the gap of inequality. In this regard, poverty is not just an economic issue, but also a reflection of social and political injustice.

Furthermore, structural poverty can reinforce power imbalances. The poor often lack strong political voices to advocate for their interests. As a result, they are marginalized from the decision-making processes that affect their own lives. In the long run, this creates an exclusive social system that perpetuates the status quo, where poverty continues to be inherited from one generation to the next.

Structural poverty results in the poor having little representation in legislative or governmental bodies. Elected political elites generally come from the upper middle class or economic elite, who have significant resources to run for office. Meanwhile, the poor have almost no access to such positions, either due to limited capital, education, or political connections.

As a result, the policy agendas produced mostly mirror the interests of the elite groups, such as tax incentives for corporations, major infrastructure development that does not always address the basic needs of the poor, or budget priorities biased towards urban and formal sectors. This strengthens the social and economic exclusion of the poor.

Source: https://en.tempo.co/read/2017820/structural-poverty-a-form-of-persistent-inequality-in-indonesi

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