Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Strengthening fiscal policy to reduce inequality

  • Muhammad Fajar Nugraha and Yanuar Falak Abiyunus

Jakarta   /   Wed, September 11 2019   /  12:54 am

ANTARA/Prasetyo UtomoThe government has succeeded in reducing the Gini ratio, which is widely used for measuring inequality, to 0.38 in March 2019 from 0.41 in 2014 and has set an ambitious target of reaching 0.37 in 2024. Zero represents perfect equality.Our economy — the largest in Southeast Asia — is growing, and our country is recognized as a member of the Group of 20, but its economic growth is not inclusive. Inequality is the cause of economic and social ills.Inequality is hindering economic growth as a result of lower labor productivity, since inequality deprives lower-income earners of the ability to stay healthy and accumulate physical and human capital. Research shows that inequality also leads to a lost opportunity in driving innovation, which is essential for making high value-added products and services through knowledge-based industries. Eventually inequality will incre...