Three Years of Jokowi-JK, Household Expenditure Inequality Figures Decline

Indonesia's income inequality has decreased during the three years of President Joko Widodo and Jusuf Kalla's administration. This is evident from the Gini Ratio, which shows a downward trend over the past three years, even placing Indonesia's inequality at a low level.

Data from the Central Bureau of Statistics (BPS) shows that the Gini Ratio in March 2017 was 0.393 on a scale of 0-1. This achievement is down 0.001 points from September 2016 and down 0.004 points from March 2017. In September 2014, the Gini Ratio was still 0.414, falling into the category of moderate inequality. Economic growth of around five percent, the creation of new jobs, and wage increases for workers are some of the factors contributing to the decrease in income inequality.

The Gini coefficient is a method for measuring overall income inequality developed by the Italian statistician Corrado Gini. The smaller the Gini Ratio coefficient, the smaller the income inequality. Conversely, a larger coefficient indicates greater inequality. A Gini Ratio of 0 indicates a perfectly even distribution of income. A Gini Ratio between 0 and 0.4 indicates low inequality, between 0.4 and 0.5 indicates moderate inequality, and above 0.5 but less than 1 indicates high inequality. A Gini Ratio of 1 indicates a perfectly uneven distribution of income, controlled by a single entity.

Revision: This article has been updated from its original title, "3 Years of Jokowi-JK, Income Inequality Decreases."