Indonesia’s economy grew rapidly over the past 30 years, in large part due to sweeping political and institutional reforms, the right mix of economic policy packages, and the development of fairer economic institutions, but progress made in reducing poverty and income inequality is faltering.

In 1996, the richest Indonesians had six times more income than the poorest. In 2014, the richest had ten times more. The top 10 percent got more than 32.4 percent, with the top 20 percent getting 47.8 percent of income.

Inequality in Indonesia and its economic growth over the past 2 decades is a consequence of the country's shift from agriculture to services without safeguards to protect vulnerable members of society.

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http://bit.ly/2hx4vRU

Read the working paper

https://www.adb.org/publications/two-decades-structural-transformation-and-dynamics-income-equality-indonesia

About the authors

Teguh Dartanto is head of the Poverty and Social Protection Research Group at the Institute for Economic and Social Research (LPEM), Faculty of Economics and Business, Universitas Indonesia.

Edith Zheng Wen Yuan is research associate

Yusuf Sofiyandi is research assistant at LPEM.

Know more about ADBI’s research on

Indonesia: http://bit.ly/2mwSyAP

Income inequality: http://bit.ly/2zIl87A