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Today's Headlines Income Distribution Inequality

  • Inequality in Indonesia: 4 Richest Equal 100 Million Poorest

    Inequality in Indonesia: 4 Richest Equal 100 Million Poorest

    A recent report released by Oxfam, a global aid and development charity, highlights the alarming level of income distribution inequality in Indonesia. According to the findings of this report, the four wealthiest Indonesians (combined) have more assets compared to the 100 million poorest Indonesians (combined). Indonesia's top four billionaires are worth USD $25 billion, which is approximately the same combined amount owned by the bottom 40 percent of the Indonesian population.

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  • Strategies to Combat Indonesia's Income Distribution Inequality

    Strategies to Combat Indonesia's Income Distribution Inequality

    Income distribution inequality is a problem in Indonesia, one that can jeopardize social, political and economic cohesion in Southeast Asia's largest economy. When looking at the Gini ratio, which is the coefficient that measures the degree of inequality in income distribution, we see a sharp rise in income inequality in Indonesia in the post-Suharto era. Thus, democracy and decentralization created an environment that allowed for rising inequality. While in the 1990s Indonesia's Gini ratio stood at an average of 0.30, it rose to an average of 0.39 in the 2000s, and remained stable at 0.41 in the years 2011-2015 before easing slightly to 0.40 in 2016.

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  • GINI Ratio Indonesia Declines: Economic Inequality Narrows

    GINI Ratio Indonesia Declines: Economic Inequality Narrows

    According to the latest data from Indonesia's Statistics Agency (BPS), wealth disparity has narrowed slightly in Indonesia, reflected by a declining Gini ratio from 0.408 in March 2015 to 0.397 in March 2016 (zero represents perfect equality, while 1 represents perfect inequality). This development is attributed to several matters, including rising earnings among Indonesia's middle-income segment. BPS noted that this increase comes on the back of government-led labor-intensive infrastructure development projects.

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  • Indonesia's Gini Ratio Fell in 2015; Concerns about Social Cohesion Persist

    Indonesia's Gini Ratio Fell in 2015; Concerns about Social Cohesion Persist

    Indonesia's Gini ratio (or Gini coefficient), which measures the degree of inequality in income distribution, improved slightly in September 2015. According to the latest data published by Statistics Indonesia (BPS), the Gini ratio of Indonesia fell from 0.41 in March 2015 to 0.40 in September 2015, indicating that income distribution inequality slightly declined (a coefficient of zero expresses perfect equality, while a reading of 1 implies maximal inequality). The modest improvement occurred in the urban areas of Indonesia where the Gini ratio fell 0.1 point to 0.43. In the rural areas the ratio remained stagnant at 0.33.

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  • Indonesia Investments' Newsletter of 31 January 2016 Released

    Indonesia Investments' Newsletter of 31 January 2016 Released

    On 31 January 2016, Indonesia Investments released the latest edition of its newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on our website over the last seven days. Most of the topics involve economic matters such as Indonesia's 9th economic stimulus package, its credit rating, credit growth, the car market, LQ45 Index, corruption, income distribution inequality, and more.

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  • OECD: Improve Job Quality, Reduce Gender Inequality for Economic Growth

    In the latest report of the Organization for Economic Co-operation and Development (OECD) the institution emphasizes that gender equality in employment should be promoted by governments in order to combat income inequality and thus achieve not only a more just and harmonious society but also boost inclusive economic growth. In most countries gender equality remains a matter of concern. The report also states that governments should not ignore the importance of broadening access to jobs and encourage investment in education.

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  • Happiness in Indonesia? 74th in the World Happiness Report 2015

    Happiness in Indonesia? 74th in the World Happiness Report 2015

    In the World Happiness Report 2015, released by the Sustainable Development Solutions Network on Thursday (23/04), Indonesia ranks 74th in terms of citizens’ happiness. The report measures the degree of happiness in 158 countries around the globe by using six variables: GDP per capita, social support, healthy life expectancy, freedom to make life choices, generosity, and freedom from corruption. Although Indonesia climbed two spots in the 2015 Happiness Index, the country still trails behind regional peers.

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  • Perceived Growing Income Distribution Inequality in Indonesia

    According to a survey conducted by Lembaga Survei Indonesia (LSI) most Indonesians believe that Indonesian society is characterized by a high degree of income distribution inequality. Over 90 percent of respondents see income inequality in Indonesia, while about 40 percent of respondents believe there is no equality at all regarding income distribution in Indonesia. With the gap between the country’s rich and poor widening, social cohesion and higher economic growth are at stake in Southeast Asia’s largest economy.

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  • Despite Poverty Reduction in Indonesia, Gap between Rich and Poor Widens

    The World Bank said that the widening of income distribution inequality in Indonesia grew at the second fastest pace among Asian countries in the past two decades. Based on the World Bank’s Indonesia Economic Quarterly (IEQ) report, Indonesia recorded the second fastest Gini coefficient increase after China. In the period 1990-2011, the Gini coefficient of Indonesia rose by an average of 0.5 percentage point per year. This is a serious matter as social cohesion and economic growth can be jeopardized by increased inequality within Indonesian society.

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  • Gini Ratio of Indonesia May Improve in 2014 on Stable Commodity Prices

    Gini Ratio of Indonesia May Improve in 2014 on Stable Commodity Prices

    The Gini ratio of Indonesia - the coefficient that measures inequality in income distribution - is expected to improve slightly this year as commodity prices have a stable outlook. Based on data from Statistics Indonesia, the ratio increased significantly since the country's Reformasi period. Between 1999 and 2013, it rose from 0.31 percent to 0.41 percent (a coefficient of zero expresses perfect equality, while one implies perfect inequality). In the last three years (2011- 2013), however, the ratio remained stable at 0.41 percent.

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Latest Columns Income Distribution Inequality

  • Rising Income Inequality in Indonesia: the Social Threat

    Rising Income Inequality in Indonesia: the Social Threat

    Although the government of Indonesia aims to lower the country's Gini coefficient to 39 in 2016, there continue to be more reports that see income inequality in Indonesia widening rather than declining. For example, a recent World Bank report notes that Indonesia's Gini coefficient rose from 30 in 2000 to 41 in 2015 (a reading of 0 represents perfect equality, while a reading of 100 represents perfect inequality). This rising trend will continue if the government fails to tackle this issue.

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  • Income Inequality in Indonesia Threatens Social, Economic & Political Stability

    Income Inequality in Indonesia Threatens Social, Economic & Political Stability

    The World Bank says income inequality in Indonesia is widening and as a consequence the fruits of Indonesia's economic growth over the past decade have only been enjoyed by the richest 20 percent of Indonesian society, leaving behind the remaining 80 percent of the population (or 200 million people). In its new report titled "Indonesia's Rising Divide" the World Bank states that rising inequality in society can jeopardize social cohesion, as well as political and economic stability over the long term. The report claims that inequality in Indonesia has reached a relatively high level and is climbing faster than in most of its regional peers.

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