BPS: Indonesia's Household Expenditure Inequality Decreases

The Central Statistics Agency (BPS) reports that Indonesia's income inequality decreased in September 2021. This is reflected in the Gini ratio, which stood at 0.381 that month, down 0.003 points compared to 0.384 in March 2021.

Similarly, compared to September 2020, the Gini ratio decreased by 0.004 points. In that period, the Gini ratio was recorded at 0.385.

Observing the trend, the Gini ratio decreased from September 2015 to September 2019. The BPS notes that this indicates an improvement in the distribution of Indonesian household income during that period.

However, the Gini ratio began to increase since the COVID-19 pandemic in March 2020. This increase continued until September 2020. Then, the Gini ratio decreased again in March 2021, but only slightly by 0.001 points.

Based on place of residence, income inequality in urban areas is higher than in rural areas. The Gini ratio in urban areas in September 2021 was 0.398, down 0.003 points from 0.401 in March 2021.

Meanwhile, the Gini ratio in rural areas was 0.314 in September 2021. This figure decreased slightly by 0.001 points compared to 0.315 in March 2021.

Based on province, seven provinces had a Gini ratio higher than the national average. These provinces are Yogyakarta Special Region (0.436), DKI Jakarta (0.411), Gorontalo (0.409), West Java (0.406), Papua (0.396), Southeast Sulawesi (0.394), and East Nusa Tenggara (0.339).

It should be noted that the Gini ratio is an indicator that shows the overall level of income inequality. The Gini ratio ranges from 0 to 1. A Gini ratio closer to 1 indicates a higher level of inequality.