Poverty and Inequality Rates Decline

To commemorate the 72nd Anniversary of the Republic of Indonesia, President Joko Widodo (Jokowi) delivered a speech before the People's Consultative Assembly session in 2017. In his speech, Jokowi emphasized that the results of development must be felt by all Indonesian people, from Sabang to Merauke, and from Miangas to Rote Island.

One of the priorities of the Joko Widodo and Jusuf Kalla administration was combating poverty and economic inequality. Data from the Central Bureau of Statistics recorded that Indonesia's poverty rate in March 2017 decreased to 10.64 percent, compared to 10.96 percent in September 2014. Similarly, the inequality of Indonesian household expenditure, measured by the Gini Ratio, also decreased to 0.393 in March 2016 from 0.402 in September 2014.

To ensure that the results of development are felt by all citizens, the government diverted fuel subsidy funds to productive sectors such as education and health. The government also built infrastructure in border regions and in the mountains of Papua. Furthermore, the government implemented a sea toll policy and a single fuel price policy throughout Indonesia. As a result, prices of goods in the outermost and remote areas have decreased significantly.