This paper discusses the evolution of education and health poverty in Indonesia during a period of substantial economic development. The paper reviews the existing empirical research and provides new estimates of the evolution of education and health poverty using the Demographic and Health Survey. The case of Indonesia suggests that poverty may urbanize but remains largely rural in nature, concentrated among those in households with heads with no or incomplete primary education and in households with heads not in work or employed in agriculture suggesting public policy priorities for the poor remain agriculture support, primary education expansion and employment generation.

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