Jakarta (ANTARA) - Economic inequality is often understood as the\nwide gap between the upper and lower groups. When that gap narrows, the\nproblem is considered resolved.<\/p>\n
In development practice, inequality rarely disappears entirely. It\nmore often changes form. At certain stages, inequality no longer appears\nas a stark chasm but as more subtle differences, particularly in\nhouseholds\u2019 ability to maintain the continuity of their welfare.<\/p>\n
In recent years, the distribution of expenditure in Indonesia has\nshown clear improvement. The gap in expenditure between groups has\nnarrowed, and the share of expenditure for the bottom 40% of the\npopulation has increased. This change indicates that the results of\neconomic growth are increasingly distributed and not just concentrated\nin the upper group. This redistribution forms an important foundation\nfor social stability and sustainable development.<\/p>\n
This improvement is also reflected in the development of national\nexpenditure inequality. According to BPS data, in September 2025, the\ninequality level measured by the Gini ratio was recorded at 0.363, lower\nthan previous periods. This downward trend extends the tendency for\nimproving expenditure distribution, after inequality pressures increased\nduring the pandemic period. In aggregate, this picture shows that\ninequality is decreasing and the structure of population expenditure\ndistribution is becoming more balanced.<\/p>\n
This distribution improvement has occurred both in urban and rural\nareas. Inequality in cities has decreased, as has in villages, with\nrural inequality consistently lower than urban. However, this\nredistribution has different characteristics between villages and\ncities. In rural areas, the share of expenditure for the lower group is\nrelatively larger, reflecting a more even distribution. However, this\nredistribution occurs within a still limited economic structure. The\nvariation in expenditure between groups is narrower because the overall\nexpenditure level is relatively low. In other words, redistribution in\nvillages is not always synonymous with greater economic strength.<\/p>\n
In urban areas, the situation is different. Although inequality has\ndecreased, the more complex economic structure creates expenditure\nvariations that remain wide. In September 2025, the urban Gini ratio was\nrecorded at 0.383, much higher than the rural figure of 0.295. Cities\nprovide more income opportunities but also present high living costs and\nsharp differences in job quality. Here, inequality is not just about the\nsize of expenditure but about income stability, job security, and access\nto protection.<\/p>\n
These differences become even more apparent when extended to the\nregional level. Inter-regional inequality still shows quite wide\nvariations, including in provinces with high economic activity. Some\nareas with strong economic bases still record inequality levels above\nthe national average, while others show much more even distribution.\nThis condition confirms that inequality cannot be simplified as an issue\nof underdeveloped versus developed regions. Even in areas with large\neconomic capacity, the distribution of welfare within them is not always\neven.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/transforming-inequality-amidst-redistribution-1776675055", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }