Jakarta Indonesia’s Gini ratio, a statistical measure used for gauging economic inequality in a population, rose slightly by 0.005 points to 0.385 in September, 2020 from 0.380 a year ago, the Central Statistics Agency (BPS) reported.
“The Gini ratio rose both in urban as well as rural areas,” BPS chief Suhariyanto said during an online press conference here on Monday.
In rural areas, the Gini ratio rose to 0.319 from 0.315, while in urban areas, it increased to 0.399 from 0.391, he informed.
The Gini ratio climbed up due to a rise in the number of people living in poverty due to the COVID-19 pandemic, he explained.
According to the BPS, the number of people living in poverty rose by 2.76 million to 27.55 million, accounting for 10.15 percent of the total population, in September, 2020 compared to 24.79 million, accounting for 9.22 percent of the total population, in September, 2019. This means the poverty rate rose by 0.97 percent, it said.
Suhariyanto said if the Gini ratio ranges between 0 and 1 or increases beyond it, the inequality rate will become higher.
If the Gini ratio stands at 0, income inequality will be distributed evenly, meaning that each individual will receive equal income, he added.
If the Gini ratio reaches 1, only one individual or a group of individuals will get all the income, he continued.
The movement of the Gini ratio differed from one province to another, the BPS reported. While the Gini ratio increased in some provinces, it fell in other provinces due to differences in the behavior of local people.
At the provincial level, the highest Gini ratio was recorded in Yogyakarta at 0.437, followed by Gorontalo (0.406), DKI Jakarta (0.400), West Java (0.398), Papua (0.395), Southeast Sulawesi (0.388), and West Nusa Tenggara (0.386). The lowest Gini ratio was recorded in Bangka Belitung Islands at 0.257.
Source: Antara News