Poverty and Inequality Analysis
The first child poverty and disparity study conducted in Indonesia in 2010–2011 revealed that in 2009, despite progress made towards reducing income deprivation and other dimensions of deprivation, around 55.8% of Indonesian children lived in households with a per capita consumption of less than PPP $2 a day, 17.4% lived below the official (national) poverty line, and 10.6% lived on less than PPP $1 per day.
The dynamics of poverty in Indonesia are becoming more complex, resulting in such conditions that the old approaches to poverty reduction through targeted programs run by individual institutions are no longer adequate. This is because the poor population has decreased and is now more difficult to identify. To make things worse, there has a growing population of both economically and socially vulnerable people.
The results of a 2011 SMERU study on urban spatial poverty and the relationship between city spatial planning and efforts to reduce poverty in Kota (the City of) Surakarta and Kota Makassar suggest that there is only a limited understanding by stakeholders, particularly the local government work units (SKPD), of the relationship between the elements of spatial planning and efforts to reduce poverty.
- Inequality has been on the rise on Indonesia during the last decade
- rising inequality is harmful for the societal stability because it increases the probability of routine violence, etnic violence, and violent crime.
- riising inquality must be urgnetly addresssed in development agendas to ensure that Indonesia continues to grow and sustain a stable democracy.
- Inequality has been on the rise on Indonesia during the last decade
- Consumption inequality (inequality on how much households spend) affects future economic growth
- Increases in education inequality (inequality on levels of educational attainment) have dire consequences for future unemployment rate
- Rising inequality poses significant risk for the economy and human development
