ECONOMIC INEQUALITY AS A CHALLENGE FOR SUSTAINABLE ECONOMIC DEVELOPMENT IN INDONESIA

Economic Inequality In Indonesia

Abstract

Economic inequality is a social problem that is still a major challenge for Indonesia that must be faced in realizing sustainable economic development. Good economic development is one way to improve the welfare and standard of living of the community, as the main goal in each region. This study aims to determine the level of expenditure inequality that occurs in Central Java Province and how inequality in Central Java Province affects Indonesia's sustainable economic development. The method used is descriptive analysis to describe economic inequality as a challenge to sustainable economic development in Indonesia, especially in Central Java. The data used is secondary data by collecting data and information from various sources such as the Central Bureau of Statistics (BPS) in Central Java and websites related to this research. From the results of the analysis that has been carried out on the level of inequality of population expenditure in Central Java Province for the last 4 years from 2019 to 2022 as measured by using the Gini ratio. The highest inequality was obtained in March 2022 at 0.374 and the lowest inequality in September 2019 at 0.358. As for the distribution of expenditure of the lowest 40 percent population group, the highest result was obtained in 2019 at 18.71 percent and the lowest result in 2021 at 18.34 percent. Where the expenditure inequality of Central Java Province is categorized as a low level of inequality.