Household Expenditure Inequality Figures Decline for Six Consecutive Periods

The Central Statistics Agency (BPS) released Indonesia's income inequality figures, measured by the Gini Ratio, which stood at 0.391 (on a scale of 0-1) in September 2017. This figure is down 0.002 points compared to March 2017 and 0.003 points lower than September 2016, representing the lowest level since 2012. This marks the sixth consecutive decline in the Gini Ratio since September 2014.

The Gini Ratio for urban areas in September 2017 was 0.404, lower than 0.407 in March 2017 and 0.409 in September 2016. Meanwhile, the income inequality figure for rural areas in September 2017 was 0.32, the same as in March 2017 but up 0.004 points from September 2016.

The Gini coefficient is a method for measuring the overall income inequality of a region's population. A lower Gini Ratio, closer to zero, indicates lower income inequality. Conversely, a higher Gini Ratio, closer to one, indicates greater income inequality.

(Read Databoks: 2018, Government Targets Inequality Reduction to 0.38%)

(Read Databoks: 2016, Yogyakarta's Inequality Highest in Indonesia)