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Jakarta Post

Income gap expected to widen in economic crisis

  • Adrian Wail Akhlas

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, September 28, 2020   /  08:06 am
The Jakarta Post Image
General image of Indonesia's economy.(Bloomberg/File)

The economic crisis unleashed by the coronavirus pandemic will deepen the income gap as some sectors and income groups may recover sooner than others, economists have said, describing this phenomenon as a “K-shaped recovery”. A K-shaped recovery highlights the divergent experiences of individuals during the pandemic, in which some workers are able to work from home and continue with their jobs, while others do not have such privileges, said Mandiri Institute head Teguh Yudo Wicaksono. “The big issue going forward is income divergence as those with the highest income may not be affected greatly by the pandemic, while those with lower and middle incomes may experience job losses and pay cuts,” he told The Jakarta Post in a press briefing on Thursday. As a result, there may be a "more polarized society, which could have significant social and economic i...