TEMPO.CO, Jakarta - The Central Statistics Agency (BPS) recorded the income inequality level in Indonesia (Gini ratio) in March 2025 at 0.375. This indicates that the inequality level in March 2025 is narrower compared to September (0.381) and March 2024 (0.379).
The inequality level is measured based on the Gini ratio index from zero to one. The number zero indicates no inequality, while the number one indicates perfect inequality. The larger the number, the broader the inequality.
As quoted from the BPS release, BPS Deputy for Social Statistics Ateng Hartono stated that this decrease indicates a small improvement in the distribution of people's income nationally. However, he said inequality remains a serious concern, especially in urban areas and several provinces that recorded Gini ratios above the national average.
Regionally, BPS noted that the Gini ratio in urban areas is higher compared to rural areas. In March 2025, the urban Gini ratio reached 0.395, while rural areas were at 0.299. This reflects that income inequality is more pronounced in large cities where the upper-class community tends to be more dominant.
"In villages, most of the jobs are in agriculture, relatively homogeneous and reflected in their spending. So, the Gini ratio will automatically be smaller compared to urban areas," explained Ateng Hartono as quoted from Antara.
Another factor that influences this difference is the employment structure and people's income. In rural areas, the majority of the population works in the agricultural sector, which tends to produce uniform consumption patterns. Meanwhile, in urban areas, the high income variation creates a larger gap in inequality.
Seven Provinces Above National Average
Although there has been a national decrease in inequality, some provinces actually recorded a higher Gini ratio than the national average. DKI Jakarta is the province with the highest income inequality, at 0.441. This figure has increased from March 2024 (0.423) and September 2024 (0.431).
Six other provinces that also recorded figures above the national average (0.375) are:
- Yogyakarta: 0.426
- Jawa Barat: 0.416
- Papua Selatan: 0.412
- Papua: 0.404
- Gorontalo: 0.392
- Kepulauan Riau: 0.382
Conversely, the province with the lowest inequality level is Bangka Belitung Islands with a Gini ratio of only 0.222.
Based on the World Bank's inequality measure, the expenditure distribution for the bottom 40 percent of the population reached 18.65 percent in March 2025.
If detailed, the distribution in urban areas is 17.64 percent, while it is higher in rural areas, at 21.75 percent. This again confirms that expenditure distribution in villages tends to be more even.
Source and Measurement Methodology
The calculation of the Gini ratio and income inequality in March 2025 used data from the National Socio-Economic Survey (Susenas) on Consumption and Expenditure. Data collection was conducted in February 2025, as March coincided with the month of Ramadan, which could potentially alter household consumption patterns.
The sample size used in this Susenas reached 345,000 households, spread across 514 districts/cities in 38 provinces throughout Indonesia. With extensive coverage, this survey provides a fairly representative overview of the social-economic conditions of the population.
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