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Today's Headlines Income Distribution Inequality

  • Higher Gini Ratio Shows Indonesia's Widening Income Distribution Inequality

    Higher Gini Ratio Shows Indonesia's Widening Income Distribution Inequality

    The Indonesian government should take more action to reverse the country's widening income distribution inequality. Indonesia's Gini ratio, the coefficient that measures inequality among income distribution, has risen in 2013 according to economist Lana Soelistianingsih. The Gini coefficient rose from 0.37 in 2012 to 0.41 in 2013 (a coefficient of zero expresses perfect equality, while one implies maximal inequality). The growth not only shows that the Indonesian government fails to tackle this problem but also implies social risks.

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Latest Columns Income Distribution Inequality

  • Impact of COVID-19 Crisis: Aggravation of Poverty and Inequality in Indonesia

    Impact of COVID-19 Crisis: Aggravation of Poverty and Inequality in Indonesia

    Poverty and inequality are always sensitive topics, especially in an emerging market like Indonesia where poverty and inequality (in terms of income distribution) have always been a big problem. It is something that puzzles Indonesians too. We often hear Indonesians say “our country is so rich in natural resources, so how can it be that we have so much poverty within our borders?”

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  • Poverty Rate Indonesia Falls to Historic Low, Inequality Eases

    Poverty Rate Indonesia Falls to Historic Low, Inequality Eases

    According to the latest data from Indonesia’s Central Statistics Agency (BPS), poverty in Indonesia has fallen to a historic low. BPS provides an update on the country’s poverty statistics twice per year, covering the state of poverty in the months of March and September. On 16 July 2018 the agency, which is a non-ministerial government institution, released the March 2018 data. And these data showed a welcome surprise.

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  • 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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