China reduced extreme poverty rapidly, but Indonesia hasn't been far behind

China is often the poster child for rapid reductions in poverty, and for good reason: in the early 1980s, over 90% of its population lived in extreme poverty, but by the early 2020s, that number had dropped to nearly zero.

Some people assume that China is the only reason global extreme poverty has declined. But that’s wrong: many other countries have seen dramatic reductions in poverty. Indonesia is one clear example; it’s shown alongside China on the chart.

In 1984, three-quarters of Indonesians lived on less than $2.15 per day. By 2023, this had fallen to less than 2%. While it didn’t quite match China’s decline, it has still been impressive. The number of people living in extreme poverty has fallen from 120 million to 5 million.

Note that the international poverty line is extremely low, defined as people living on less than $2.15 per day. But Indonesia has also made progress measured by higher poverty lines.