Economic Inequality in Indonesia
📉 Indonesia faces persistent economic inequality, where a study revealed children from poor families earn less than those from wealthier backgrounds.
💰 Oxfam data highlighted extreme wealth concentration, with the four richest Indonesians' wealth ($25 billion) equivalent to that of the 100 million poorest citizens.
📊 In 2016, Indonesia was ranked 4th globally for highest inequality, underscoring the urgent need for policymakers to address economic distribution.

Measuring & Trending Inequality
⚖️ The Gini Ratio, measured by BPS (Badan Pusat Statistik), was 0.381 in September 2022, where a lower value indicates less inequality.
📈 Indonesia's Gini Ratio showed a general declining trend from 2016-2022, with an increase only in 2020 due to the COVID-19 pandemic.
💵 An additional BPS measure, the percentage of expenditure by the bottom 40%, reached 18.06% in March 2022, categorizing Indonesia's overall inequality as low by World Bank standards.

Regional Disparities
🗺️ Yogyakarta recorded the highest Gini Ratio (0.459), followed by Gorontalo, West Java, DKI Jakarta, and Papua, indicating greater regional disparities.
🏝️ Conversely, Bangka Belitung exhibited the lowest Gini Ratio (0.255), suggesting a more equitable distribution in that province.
🏡 Inequality is lower in rural areas, with the bottom 40% spending 21.01% of total expenditure, compared to urban areas at 17.07%.

Policy Recommendations for Equity
🎓 Enhance education quality and improve healthcare services to uplift community welfare and bridge socio-economic gaps.
🤝 Implement targeted social assistance programs and boost the quality of human resources to foster a more equitable society.

Key Points & Insights
➡️ Despite a generally declining Gini Ratio, Indonesia's persistent economic inequality requires continuous monitoring and strategic policy interventions to improve public welfare.
➡️ Policymakers must prioritize comprehensive strategies focusing on education, health, targeted social support, and human capital development to foster a more equitable economy.
➡️ The significant regional disparities in Gini Ratio (e.g., Yogyakarta vs. Bangka Belitung) highlight the necessity of region-specific policies to address localized inequality effectively.

📸 Video summarized with SummaryTube.com on Sep 18, 2025, 03:59 UTC