Selasa 08 Dec 2015 15:27 WIB

World Bank: Income inequality in Indonesia widen

Rep: C09/ Red: Julkifli Marbun
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REPUBLIKA.CO.ID, JAKARTA -- Income inequality between the rich and the poor in Indonesia was widened. Based on World Bank report, gini ratio as an indicator of inequality has touched the figure of 0.42 percent this year.

"This figure is the highest in history of Indonesia," said World Bank Director for Indonesia, Rodrigo Chaves, in his presentation, in Jakarta, Tuesday (8/12).

Rodrigo explained, gini ratio of Indonesia continued to increase. In 2000, gini ratio was at 0.30 percent. Then, it increased to 0.41 percent in 2014 and this year it reached 0.42 percent.

Read: BPS: No significant drop in poverty rate

According to him, Indonesia's economic growth in the past decade only benefited 20 percent of rich people in Indonesia. While 80 percent of the nearly 205 million people of Indonesia were still in the cycle of poverty.

In comparison, level of consumption of 10 percent of rich people in Indonesia was as great as total consumption of 42 percent of poor people. Level of income inequality in Indonesia was rising faster than other countries of East Asia.

"Indonesia must address this imbalance, because it can cause a significant danger," he added.

Actually, said Rodrigo, income inequality in Indonesia had declined in Asian financial crisis of 1997-1998. At that time, the inequality declined because many rich people's incomes also declined.

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