Indonesia's Economic Inequality Widened in September 2024

Economics & Macro

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Erlina Fury Santika 16/01/2025 14:36 WIB

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BPS data shows that Indonesia's economic inequality or household expenditure disparity rose to 0.381 points in September 2024. This increase in inequality occurred in both rural and urban areas.

Indonesia's Expenditure Inequality/Gini Ratio by Regional Characteristics (September 2017-September 2024)

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Indonesia's Economic Inequality Widened in September 2024

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Indonesia's Expenditure Inequality/Gini Ratio by Regional Characteristics (September 2017-September 2024)

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The Central Statistics Agency (BPS) reported that Indonesia's income or economic inequality, measured by the Gini ratio, reached 0.381 points on a scale of 0-1 in September 2024.

This figure is up from 0.379 in March 2024, which was the lowest recorded between March 2018 and March 2024. This means, according to BPS, that the distribution of income among Indonesian residents improved in March 2024.

Inequality increased in both rural and urban areas in September 2024, but the disparity was greater in urban areas.

BPS explained that the urban Gini ratio in September 2024 was 0.402, a 0.003-point increase compared to 0.399 in March 2024.

Meanwhile, the rural Gini ratio in September 2024 was 0.308, a 0.002-point increase compared to March 2024.

Historically, since 2017, the highest national inequality occurred in March 2023, reaching 0.388. Regionally, the urban Gini ratio was 0.409, while the rural Gini ratio was 0.313, showing no significant increase compared to September 2020, as seen in the graph.

The Gini ratio or Gini coefficient is measured on a scale of 0 to 1. According to the National Development Planning Agency (Bappenas) website, a Gini ratio of 0 indicates perfect equality, meaning all residents have the same per capita expenditure.

Conversely, a Gini coefficient of 1 indicates perfect inequality, meaning only one resident has per capita expenditure, and the rest have none.

"Therefore, the higher the Gini coefficient, the higher the level of inequality in a region," Bappenas wrote on its official website.

(See also: BPS: Indonesia's Economic Inequality Decreased in March 2024)

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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Indonesia's Economic Inequality Widened in September 2024

Indonesia's Economic Inequality Widened in September 2024

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