Indonesia's Economic Expenditure Distribution Dominated by the Top 20% of the Population

The Central Statistics Agency (BPS) reported that the expenditure of the lowest 40% of the population was 17.76% in March 2021. This figure is lower than September 2020, which was 17.93%. However, it is still higher than March 2020, which was 17.73%.

According to the World Bank's criteria, this percentage falls into the low inequality category. This is because the expenditure of the lowest 40% of the population is above 17%.

A country is considered to have moderate inequality if the expenditure of the lowest 40% of the population is in the range of 12%-17%. High inequality occurs if the expenditure of the lowest 40% of the population is less than 12%.

Based on region, the expenditure of the lowest 40% of the population in rural areas was 20.68%. Meanwhile, in urban areas, it was 16.81%.

Therefore, the level of inequality in urban areas is moderate. The level of inequality in rural areas is low.