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Jakarta Post

Minding the poverty gap in Indonesia with geography

  • Namira Samir
    Namira Samir

    Islamic finance specialist at the United Nations Development Program (UNDP) Indonesia

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Jakarta   /   Mon, March 25, 2019   /  09:10 am
Minding the poverty gap in Indonesia with geography A man standing in front of his house in a slum under a highway in Teluk Gong, North Jakarta. The neighborhood is filled with settlements made of thin wood boards as their walls and shared the bottom of the bridge as their roofs. (JP/Nea Maryami Ningtyas)

Indonesia is facing a widening gap between the rich and the poor. The Gini ratio in 2018 stood at 0.39 and welfare improvements for the richest group have been far more effective than improvements for the poorest group. Rising inequality between regions will only make it more difficult for the government to eliminate poverty in all its forms. Of Indonesia’s 34 provinces, 14 experienced negative progress in reducing its standing in the poverty gap index ( P1 ) in rural areas in the period of March to September 2018. Meanwhile, only six provinces saw a P1 increase in urban areas in the same period, according to Statistics Indonesia (BPS). Both inequality and poverty are aggravated not only by the wealth gap between the rich and the poor, spending levels and other economic factors, but also geographical conditions. It is striking how much attention is given to reducing the po...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.