Indonesia's Household Spending Inequality Rose Slightly in March 2022

Indonesia's income inequality, measured using the Gini ratio, slightly increased in March 2022.

The Central Bureau of Statistics (BPS) reported a Gini ratio of 0.384 in March 2022. This figure is up 0.003 points from the September 2021 figure of 0.381, but unchanged compared to March 2021.

The Gini ratio ranges from 0 to 1. The closer the figure is to 1, the higher the assumed level of inequality.

"A Gini ratio of 0 indicates perfect income equality, where everyone has the same income. A Gini ratio of 1 indicates perfect inequality, where one person has everything and everyone else has nothing," BPS explained on its official website.

"In other words, the Gini ratio should be as close to 0 as possible to indicate equitable income distribution among the population," BPS continued.

As shown in the graph, the Indonesian Gini ratio showed an upward trend from 1999 to 2012. After 2012, the trend has been downward, although not significantly.

This indicates that income inequality in Indonesia has been higher in the last ten years compared to previous decades.

Regionally, the Gini ratio in urban areas in March 2022 was 0.403, up from 0.398 in September 2021 and 0.401 in March 2021.

The Gini ratio in rural areas in March 2022 was 0.314, unchanged from September 2021 but down from 0.315 in March 2021.

At the provincial level, the highest inequality was in Yogyakarta Special Region, with a Gini ratio of 0.439. Bangka Belitung Islands Province had the lowest, with a Gini ratio of 0.236.

(Also read: [Income Inequality in DKI Jakarta Continues to Rise During the Pandemic](https://databoks.katadata.co.id/datapublish/2022/01/28/tingkat-ketimpangan-penduduk-dki-jakarta-terus-meningkat-selama-pandemi))