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Jakarta Post

Reducing regional inequality

  • Mamay Sukaesih

    Mandiri

Jakarta   /   Wed, September 11 2019   /  02:18 am

Inequality in Indonesia is a tough challenge, although income inequality remains relatively stagnant. According to Statistics Indonesia (BPS), the country recorded a Gini coefficient of 0.38 in March 2019, slightly higher than 0.37 in 2009.Inequality in Indonesia is higher than in other Asian countries. According to the World Bank, Indonesia’s Gini coefficient is higher than the 0.365 recorded in Thailand, 0.356 in India, 0.353 in Vietnam and 0.321 in Japan in March. Moreover, most of the nation’s wealth is controlled by a mere handful of households in Indonesia.The Credit Suisse Global Wealth Databook shows that 10 percent of Indonesian households control 75.3 percent of national wealth. In addition, regional inequality is on the rise. During the first half of 2019, Java still dominated the national economy with 59.2 percent of gross domestic product (in terms of real GDP), which is...