There are some methods in the social literature to estimate the level ofpoverty. Poverty is a latent and still a big problem in many developing countries,including Indonesia. Many theories, concept and approaches have beendeveloped and are being developed to find the most suitable way in describingand estimating poverty, and therefore find ways to eradicate poverty. It is not aneasy task, since understanding and definitions of poverty should consideratevarious aspects. It is hoped that better understanding on this matter can helpalleviate poverty acutely suffered by many Indonesians.