Indonesia's Economic Inequality Figures Claimed to Have Fallen in March 2025

Economics & Macro

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Erlina Fury Santika 28/07/2025 14:32 WIB

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According to BPS data, Indonesia's Gini ratio, a measure of economic inequality, decreased in March 2025. This is a breakdown of the figures for urban and rural areas.

Indonesia's Expenditure Inequality/Gini Ratio by Regional Characteristics (March 2017-March 2025)

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Indonesia's Expenditure Inequality/Gini Ratio by Regional Characteristics (March 2017-March 2025)

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The Central Statistics Agency (BPS) released Indonesia's income or economic inequality figures, measured using the Gini ratio, at 0.375 in March 2025.

This figure decreased from 0.381 in September 2024 and 0.379 in March 2024.

Historically, the Gini ratio has fluctuated. In March 2017, it reached 0.393, the highest from 2017 to 2025.

Meanwhile, the lowest Gini value during the same period was 0.375 in March 2025. BPS revealed that the decrease in the Gini ratio indicates an improvement or equalization of Indonesian household expenditure at that time.

Regionally, the ratio in urban areas in March 2025 was 0.395. This figure reportedly decreased by 0.007 points compared to September 2024 (0.402) and by 0.004 points compared to March 2024 (0.399).

Meanwhile, the Gini ratio in rural areas in March 2025 was recorded at 0.299. This figure decreased by 0.009 points compared to September 2024 (0.308) and by 0.007 points compared to March 2024 (0.306).

The Gini ratio or Gini coefficient is measured on a scale of 0 to 1. According to the Bappenas website, a Gini ratio of 0 indicates perfect equality, meaning that 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 others have none.

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

(Read: Indonesia's Economic Inequality Widened in September 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 Figures Claimed to Have Fallen in March 2025

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