Poverty and Inequality Analysis
Digitalization has contributed substantially to the global economy during the COVID-19 pandemic. In Indonesia’s case, digitalization even sustained the country’s economy during the pandemic. It is only appropriate that the government continue accelerating its digital transformation in postpandemic recovery.
Indonesia is facing unprecedented levels of uncertainty as the war in Ukraine fuels a global costof-living crisis. The Covid-19 virus continues to mutate, with new variants emerging at greater frequency and infect hundreds of thousands of people. By the time this report is written, experts warn Indonesia of the latest Covid-19 virus mutation, the XBB subvariant.
This publication is only available in Bahasa Indonesia.
When President Joko “Jokowi” Widodo took office in 2014, Indonesia was facing stagnating poverty and high inequality. To address these problems, he quickly introduced several initiatives, mainly in the form of social assistance programmes which gave the poor access to education and health services, as well as food and cash transfers, and grants for villages as mandated by the Village Law.
Since the launch of Indonesia's decentralization reforms in 2001, the country has achieved significant progress in improving the welfare of its citizens—as seen from increasing income per capita and decreasing poverty levels. However, vertical inequality has increased, raising concerns whether inequality between different parts of the country has also grown.
