The Inequality Diagnostic Report: Indonesia

The Inequality Diagnostic Report measures multidimensional aspects of inequalities in Indonesia in the last decade, while also identifying policies that shape the current state of inequality in the country. The report analyzes inequalities in Indonesia from a comprehensive point of view, which takes into account its multiple dimensions such as income distribution, labour income, household assets and services, but also spatial inequality or gender disparities. It also covers inequality in access to and quality of education and health, and a set of basic services such as internet, drinking water, sanitation, and electricity. All this dimensions of inequality mentioned above are described with a particular focus on groups according to islands, income groups and educational levels of the population, among others. The report has been developed by Lembaga Penyelidikan Ekonomi dan Masyarakat (LPEM) from the University of Indonesia in close collaboration with Badan Pusat Statistik (BPS, the Central Statistical Office for Indonesia) and AFD, in the framework of the Extension of the EU-AFD Research Facility on Inequalities.

Initially presented in Jakarta (Java) in 2023, it has been disseminated and discussed in 2024 in four other islands: East-Kalimantan, Sumatra, Sulawesi and West-Papua. Among the main results, it shows that income inequality in Indonesia has been on a slightly declining trend in the past decade and that this improvement in inequality is consistent throughout various measures This Inequality Diagnostic is key to understanding the gaps that exist in Indonesia, and allows for evidence-based decision-making and progress towards reducing inequalities.