The state of inequality in Indonesia
Inequality of household consumption in Indonesia has been increasing since 2000. The country’s official poverty rate has halved between 1999 and 2012, falling from 24% to 12%. However, the Gini coefficient, a measure of national consumption inequality, has increased from 0.32 in 1999 to 0.41 in 2012[1]. Hence income distribution has become much more unequal. The affluent were the most affected by the Asian financial crisis and slowest to recover, but since 2003, Indonesia’s richest 20% have enjoyed much higher growth in incomes and consumption. Regional disparities also persist, further contributing to inequality nationally. Eastern Indonesia lags behind other parts of the country, notably Java.