Indonesia's Economic Inequality Decreases in March 2024

Economics & Macro

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Erlina Fury Santika 01/07/2024 17:16 WIB

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Based on the Gini ratio calculation, Indonesia's economic inequality was recorded at 0.379 points in March 2024, down from 0.388 points a year earlier.

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

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Indonesia's Economic Inequality Decreases in March 2024

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

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The Central Statistics Agency (BPS) revealed that Indonesia's income or economic inequality reached 0.379 points in March 2024. This inequality is measured using the Gini ratio, with a scale of 0-1 points.

The Gini ratio in March 2024 decreased slightly by 0.009 points compared to March 2023, which was 0.388. It also decreased by 0.002 points compared to September 2022, which was 0.381 points.

Based on regional characteristics, urban areas experienced greater inequality than rural areas.

The urban Gini ratio in March 2024 was recorded at 0.399 points; a slight decrease from March 2023 (0.409) and September 2022 (0.402).

Meanwhile, the rural Gini ratio was recorded at 0.306 points in March 2024; down from March 2023 and September 2022, which were 0.313 respectively.

BPS stated that the national Gini ratio trend has been continuously declining since September 2017 until September 2019. "This condition indicates that during that period, there was an improvement in the distribution of household expenditure in Indonesia," wrote BPS in its report, *Indonesia's Household Expenditure Inequality Rate*, March 2024, Monday (1/7/2024).

However, BPS continued, the inequality level increased during the Covid-19 pandemic, precisely in March 2020 and September 2020. Afterward, the Gini ratio trend fluctuated. In March 2023, the Gini ratio reached 0.388—the highest since September 2018.

The inequality level decreased in March 2024. BPS stated that this figure is the lowest since September 2017-March 2024.

The Gini ratio or Gini coefficient is measured on a scale of 0 to 1 points. Citing the Bappenas website, a Gini ratio of 0 points indicates perfect equality, meaning that all residents have the same per capita expenditure.

Meanwhile, a Gini coefficient of 1 point indicates perfect inequality. This illustrates that 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.

(See also: [Economic Inequality in Indonesia Increased in March 2023](https://databoks.katadata.co.id/datapublish/2023/07/18/ketimpangan-ekonomi-di-indonesia-meningkat-pada-maret-2023))

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."