Indonesia's Economic Inequality Largely Unchanged in the Last 20 Years

Economics & Macro

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Adi Ahdiat 30/06/2022 18:40 WIB

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According to the World Inequality Report 2022, wealth inequality among Indonesian citizens has remained relatively stagnant over the past two decades.

Asset Ownership Proportion of the Upper and Lower Classes in Indonesia (2001-2021)

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Asset Ownership Proportion of the Upper and Lower Classes in Indonesia (2001-2021)

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According to the *World Inequality Report 2022*, economic inequality in Indonesia has not changed significantly in the last two decades.

The report notes that during the 2001-2021 period, 50% of the Indonesian population owned less than 5% of the national total household wealth.

Meanwhile, the top 10% of the population owned approximately 60% of the national household wealth during the same period, as shown in the graph.

National household wealth in this report is defined as the sum of all financial assets (including stocks and other securities) and non-financial assets (such as houses) owned by Indonesian households.

"Since 1999, wealth levels in Indonesia have experienced significant growth. However, this growth has left wealth inequality virtually unchanged," the *World Inequality Report 2022* states.

The report also notes that in 2021, the income inequality ratio in Indonesia was 1:19. This means that the population of the highest economic class had an average income 19 times higher than the population of the lowest economic class.

This ratio is higher than that of the United States, which has an income inequality of approximately 1:17, or Russia, China, South Korea, and Nigeria, which have inequality ratios of 1:14.

"Governments around the world release annual economic growth figures. But these figures do not tell us about the distribution of economic growth within the population, they do not tell us who benefits and who loses from economic policies," writes the *World Inequality Report 2022*.

"Income and wealth inequality have increased everywhere since the 1980s, along with the widespread deregulation and liberalization programs that have taken different forms in each country," it continues.

Editor : Adi Ahdiat

"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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Indonesia's Economic Inequality Largely Unchanged in the Last 20 Years

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