Poverty indices are calculated to:
1. Determine poverty levels at household, village, subdistrict and district levels
2. Diagnose regional problems
3. Diagnose sectoral problems
4. Help prepare poverty alleviation intervention strategies
5. Help determine poverty relief programme targets more accurately.
Although the indices are calculated at household level, they have to be aggregated at the village or subdistrict level as the survey does not cover all households of a given village.
The example from Kutai Barat shows that, in some villages, there were blanks in context variables. In such a case, indices cannot be correctly calculated. If fewer than five households provide answers to the...