Indonesia's Rising Divide

In 2015, Indonesia stands as an increasingly divided country, unequal in many ways. There is a growing income divide between the richest 10 percent and the rest of the population, and this gap is driven by many other types of inequality in Indonesi...

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Bibliographic Details
Main Author:	World Bank
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Jakarta 2016
Subjects:	HOUSEHOLD INCOMES NEW MARKET EMPOWERMENT RISKS FINANCIAL SERVICES RECEIPT ECONOMIC GROWTH VILLAGES SOCIALIZATION FINANCIAL RESOURCE PEOPLE FINANCING ECONOMIC SECURITY VILLAGE MINIMUM WAGE INFORMATION TECHNOLOGY INTEREST ANTENATAL CARE PREVENTION LAWS EQUITABLE ACCESS INCOME- GENERATING ASSET FINANCIAL RESOURCES INEQUALITIES HEALTH CARE REVENUES FISCAL POLICY WELFARE HEALTH SUBSIDY INCOME TAX CORRUPTION SMART CARD PAYMENTS SAVING LABOR FORCE SURVEY NEW BUSINESS PUBLIC HEALTH SAFETY NETS KNOWLEDGE DISABILITIES PUBLIC POLICY LABOR MARKET FISCAL POLICIES CREDITS INDIVIDUAL ACCESS SAVINGS TECHNICAL ASSISTANCE IRON IMMUNIZATION STERILIZATION PATIENTS PATIENT EDUCATIONAL ATTAINMENT SECONDARY SCHOOLS ACCESS TO INSURANCE PUBLIC FUNDS FOOD PREPARATION VULNERABLE HOUSEHOLDS SCHOLARSHIPS AGING NURSES MIGRATION VIOLENCE PAYMENT FISCAL RESOURCES SCHOLARSHIP LIMITED ACCESS HOUSEHOLD INCOME LEARNING OPPORTUNITIES DISASTERS SOCIAL SECURITY POOR ACCESS ENTERPRISES HIGHER EDUCATION LEVELS SOCIAL DEVELOPMENT UNEQUAL ACCESS ASSET ACCUMULATION MORTALITY EQUAL OPPORTUNITIES FINANCE MINIMUM WAGES ENROLMENT RATES EDUCATION SPENDING ENTREPRENEURIAL ACTIVITY FISCAL DEFICIT PRIMARY SCHOOLS EXPENDITURE UNIONS UNEMPLOYMENT EQUITY INCOME TAXES HUMAN CAPITAL SOCIAL INEQUALITY DIPHTHERIA YOUNG ADULTS WORKERS INFORMAL WORKERS CAPITAL YOUNG WORKERS IUDS EQUAL ACCESS AGED LACK OF ACCESS STUDENT EDUCATION LEVELS FAMILY ACCESS TO FINANCE GENDER BANK INCOME-GENERATING ASSET CREDIT HEALTH OUTCOMES HYGIENE FINANCIAL INSTRUMENTS HEPATITIS B HOUSEHOLD FAMILY PLANNING EDUCATION LEVEL EXPENDITURES CREDIT INFORMATION PROPERTY EARLY CHILDHOOD PROPERTIES JOB CREATION EMPLOYMENT GROWTH CHILD NUTRITION PHYSICAL ASSETS NUTRITION ACCESS TO MARKETS EMPLOYERS ADOLESCENTS QUALITY OF LIFE PRIMARY HEALTH CARE INTRAUTERINE DEVICES ACCREDITATION INSURANCE PREMIUMS GOVERNMENT POLICIES WEIGHT PHYSICIANS ECONOMIC DEVELOPMENT PREGNANT WOMEN EMPLOYER CHILDREN SECURITY CLINICS INVESTMENT EXTREME POVERTY ID HEALTH FOR ALL HOUSEHOLDS ACCESS TO SERVICES EQUALITY PROFESSIONAL DEVELOPMENT FINANCIAL ASSETS EMPLOYEE HEAD OF HOUSEHOLD REVENUE POLIO EARNINGS STUDENTS INVESTMENTS BORROWING FINANCIAL SUPPORT GREATER ACCESS LIVING CONDITIONS VULNERABLE CHILDREN STRATEGY EDUCATIONAL LEVELS CHILD HEALTH SERVICES FAMILIES WOMEN OUTREACH MEDICINES HOSPITALS LABOR MARKETS BIRTH ATTENDANT HEALTH SERVICES IMPLEMENTATION PREGNANCY ABORTION LABOR MARKET LEGISLATION GUARANTEE NURSING BREASTFEEDING INEQUALITY CREDIT MARKET EMPLOYEES
Online Access:	http://documents.worldbank.org/curated/en/2016/06/26514564/indonesias-rising-divide http://hdl.handle.net/10986/24765

Description
Summary:	In 2015, Indonesia stands as an increasingly divided country, unequal in many ways. There is a growing income divide between the richest 10 percent and the rest of the population, and this gap is driven by many other types of inequality in Indonesia.People are divided into haves and have-nots from before birth. Some children are born healthy and grow up well in their early years; many do not. Some children go to school and receive a quality education; many do not. In today’s modern and dynamic economy; most do not and are trapped in low-productivity and low-wage jobs. Some families have access to formal safety nets that can protect them from the many shocks that occur in life; many do not. And a fortunate few Indonesians have access to financial and physical assets (such as land and property) that increase their wealth over time. This wealth is passed down from generation to generation, both in the form of money and physical assets, and through greater access to better health and education. As a result, inequalities are being compounded and deepened over time. This report asks why inequality is increasing, why it matters, and what can be done. The first section examines the trend in inequality, which is already relatively high in Indonesia and rising more rapidly than in many neighboring countries. The second section seeks to understand what is driving rising inequality in Indonesia. The final section looks at what can be done to prevent the country from becoming even more divided. This section suggests ways to avoid an Indonesia in which relatively few people are healthy, happy and prosperous, and many more can only aspire to a better life but are unable to attain it.

Indonesia's Rising Divide

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