BPS: Indonesia's Economic Inequality Relatively Low in March 2023

Economics & Macro

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Erlina Fury Santika 21/07/2023 17:19 WIB

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The Indonesian Statistics Agency (BPS) measures Indonesian economic inequality through the expenditure of the lowest 40% of the population. The measurement is based on World Bank standards.

Distribution of Indonesian Household Expenditure (March 2022-March 2023)

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BPS: Indonesia's Economic Inequality Relatively Low in March 2023

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Distribution of Indonesian Household Expenditure (March 2022-March 2023)

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The Central Statistics Agency (BPS) calculated Indonesia's income or economic inequality rate from March 2022 to March 2023.

This measurement uses the percentage of expenditure in the lowest 40% of the population, as a reference from the World Bank. This measurement differs from the Gini ratio.

Using this measurement, the level of inequality is divided into three categories.

First, high inequality if the expenditure percentage of the lowest 40% of the population is less than 12%.

Second, moderate inequality if the expenditure figure for the lowest 40% is between 12-17%.

Third, low inequality if the expenditure of the lowest 40% is above 17%.

In March 2023, the expenditure percentage of the lowest 40% of the population was 18.04%.

"This means it falls into the low inequality category," wrote BPS in its report on Monday (17/7/2023).

Unfortunately, this condition decreased compared to September 2022, which was 18.24%. Meanwhile, compared to March 2022, the expenditure of the lowest 40% of the population reached 18.06%.

Based on region, BPS stated that in March 2023, the expenditure of the lowest 40% of the urban population was 16.99%.

Meanwhile, the expenditure of the lowest 40% of the rural population was recorded at 21.18%.

"Thus, according to the World Bank's criteria, inequality in urban areas falls into the moderate inequality category, while inequality in rural areas falls into the low inequality category," said BPS.

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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BPS: Indonesia's Economic Inequality Relatively Low in March 2023

BPS: Indonesia's Economic Inequality Relatively Low in March 2023

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BPS: Indonesia's Economic Inequality Relatively Low in March 2023

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