Urban Inequality is Higher Than Rural Inequality

Urban inequality remains higher than rural inequality. The Central Bureau of Statistics (BPS) released data showing a slight decrease in the Gini ratio in September 2016 for both urban and rural areas, as well as nationally. The urban Gini ratio was recorded at 0.409 and the rural Gini ratio at 0.316. Nationally, the Gini ratio was recorded at 0.397. Despite the decrease, inequality in urban areas is still considered high.

BPS Head Suhariyanto explained that over time, inequality in cities has always been higher than in villages. This is because the gap between population strata in urban areas is considered higher than in villages. The greater diversity of occupations in urban areas compared to rural areas also contributes to the high level of inequality in urban areas.

The Gini ratio is an indicator used to illustrate inequality or unevenness, with values ranging from 0 to 1. A value of 0 indicates perfect equality, while a value of 1 indicates perfect inequality. A Gini ratio < 0.4 indicates a low level of inequality. A Gini ratio between 0.4 and 0.5 indicates a medium level of inequality, and a Gini ratio above 0.5 indicates a high level of inequality.