Urban Inequality in Indonesia is the Highest Compared to its Peers

The World Bank report titled "Unlocking Indonesia's Urban Potential" shows that Indonesia's urban Gini ratio is 0.41. This figure is the highest compared to other peer countries, such as Malaysia (0.39), India (0.38), Thailand (0.36), and China (0.34). The World Bank also notes that the highest Gini ratios are found in Bandung, Yogyakarta, Surakarta, and Malang.

The Gini ratio is an indicator used to measure income inequality. The Gini ratio ranges from zero (perfect equality) to one (perfect inequality). The closer the Gini ratio is to 1, the higher the inequality in that region. Conversely, the closer it is to zero, the better the income distribution.

For rural areas, Indonesia recorded a Gini ratio of 0.33, lower than the urban Gini ratio. Indonesia's rural Gini ratio is second highest in Asia, alongside Thailand. The highest rural inequality is in China and Malaysia at 0.36. The lowest inequality is in India at 0.29.

(Read Databoks: [These are the Provinces with the Highest Inequality](https://databoks.katadata.co.id/datapublish/2019/07/15/inilah-provinsi-dengan-ketimpangan-tertinggi))