Income gap widening, says BPS<\/p>\n
JAKARTA (JP): The chairman of the Central Bureau of Statistics
\n(BPS) Sugito Suwito disclosed yesterday that the income gap
\nbetween those in the lowest and highest brackets has been
\nwidening in the past five years.<\/p>\n
The results of surveys on family incomes showed that the
\nratios between the lowest and the highest income brackets were
\none to 6.5 in 1975, one to 5.3 in 1980, one to 3.8 in 1985, one
\nto 4.3 in 1990 and one to 6.2 in 1993.<\/p>\n
Sugito explained at a hearing with the Budgetary Commission of
\nthe House of Representatives that his bureau had developed its
\nown model to measure the equality of incomes among Indonesian
\nfamilies, called the Indonesian Social Economic Accounting
\nSystem.<\/p>\n
The system, derived from the social accounting matrix, has
\nbeen applied for the calculation of the income spreads among
\nIndonesian families in 1975, 1980, 1985, 1990 and 1993.<\/p>\n
\"We can see from the data that the gaps had been narrowing in
\nthe period between 1975 and 1985, while in the period 1990 to
\n1993, the gaps widened again,\" Sugito told the commission.<\/p>\n
Based on the bureau's calculations, Indonesian families were
\nbroken down into 10 major groups, ranging from farm laborers who
\nhave no land to toil at the lowest level to the highest income
\ngroups living in urban areas.<\/p>\n
The per capita income of the lowest-income group recorded in
\n1975 was Rp 40,110 (US$12.1 at current rate) per year, while that
\nin the highest group was Rp 259,700. In 1980, the lowest got Rp
\n103,820 and the highest Rp 547,990; in 1985 the lowest Rp 247,370
\nand the highest Rp 906,570; in 1990 the lowest Rp 438,420 and the
\nhighest Rp 1.9 million; in 1993 the lowest Rp 502,200 and the
\nhighest Rp 3.1 million.<\/p>\n
\"In terms of incomes, all groups have been growing. However,
\nthe rate of growth of those in the upper-income group has been
\nhigher than in the lower-income group,\" Sugito said.<\/p>\n
Based on the same system, the bureau had also conducted
\nsurveys to measure gaps between small and large non-oil
\nindustrial entities in the period between 1983 and 1994.<\/p>\n
\"From the industrial sector, we can clearly see the problems
\nof economic divisions,\" Sugito said.<\/p>\n
Contribution<\/p>\n
The results of the bureau's surveys showed that the
\ncontribution of non-oil industries to the gross domestic product
\nincreased from 11.6 percent in 1983 to 21.2 percent in 1994. Of
\nthe increase, large-scale industrial companies enjoyed the
\nfastest growth, while the growth of the household, small and
\nmedium industries was very small.<\/p>\n
The contribution of large industries to the gross domestic
\nproduct increased dramatically from 7.72 percent in 1983 to 21.19
\npercent in 1994. Meanwhile, the contribution of the combination
\nof household, small and medium industries rose very slightly from
\n3.9 percent in 1983 to 4.9 percent in 1994.<\/p>\n
Indonesia's gross domestic product rose from Rp 77.6 trillion
\nin 1983 to Rp 337.35 trillion in 1994.<\/p>\n
In its surveys the bureau defined large industrial companies
\nas those which employed over 100 workers. They were then
\nclassified into three groups: those employing between 100 and 500
\nworkers, those employing between 500 and 1,000 workers and those
\nemploying over 1,000 workers.<\/p>\n
Of the three groups, those with over 1,000 workers enjoyed the
\nhighest growth in terms of the number of companies and their
\nadded value.<\/p>\n
The number of industrial firms with over 1,000 workers
\nincreased from 229 in 1983 to 773 in 1994, and their combined
\nadded value rose from Rp 2.8 trillion to Rp 32.15 trillion.<\/p>\n
The number of large industrial firms with labor force of
\nbetween 500 and 1,000 people rose from 442 with total added value
\nof Rp 1.2 trillion in 1983 to 976 with added value of Rp 14.66
\ntrillion in 1994.<\/p>\n
The number of large industrial companies with labor forces of
\nbetween 100 and 500 people grew from 2,177 with total added value
\nof Rp 1.9 trillion in 1983 to 4,610 with added value of Rp 14.7
\ntrillion in 1994. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/income-gap-widening-says-bps-1447893297",
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