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Jakarta Post

Inequality overshadows Indonesia's economic growth as millions remain stuck in poverty

  • Markus Makur, Jon Afrizal and Made Anthony Iswara

    The Jakarta Post

PREMIUM
Jakarta   /   Thu, November 14, 2019   /  08:00 am
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Gini index ranking among countries in Southeast Asia.(JP/Credit Suisse Research Institute Global Wealth Databook 2019)

Indonesia’s economic growth of 5.02 percent percent year-on-year (yoy) in the third quarter, although the lowest rate in more than two years, would be a dream come true for many other countries. The global economy will grow by 3.2 percent this year, according to the International Monetary Fund’s forecast. Not all Indonesians, however, can enjoy their country’s above-average growth, with 25 million still living on less than US$1 per day as of March this year, Statistics Indonesia (BPS) data show. A recent report by the Asian Development Bank (ADB) revealed that 22 million Indonesians endured hunger in the period of 2016 to 2018. Inequality in Indonesia increased from 2000 to 2016, as reflected in a rising Gini ratio, but has since dropped to a Gini reading of 0.382 as of March this year, according to SMERU Research Institute economic development researcher Ridho Al...