September 16, 2019
 In 2022-Income Inequality

Country: Indonesia
Delegate Name: Hope Orban

United Nations Development Program
Income Inequality
Republic of Indonesia
Hope Orban
Forest Hills Eastern

Income inequality is the measure of how evenly distributed wealth is in a society. According to The World Inequality report, the richest 10% of the global population currently takes 52% of global income, whereas the poorest half of the population earns 8.5% of it. One way it is measured is the Gini Coefficient. This measurement compares the cumulative proportions of a population against the cumulative proportions of income they receive. In the Gini Coefficient, countries are rated on a scale of 0 to 100 (0 being the most equal and 100being the least equal). Income inequality is partially caused by social issues. Past laws, policies, and prejudices contribute to income inequality by creating larger wage gaps between people based on gender, race, age, migrant status, and many others. These issues are closely attached to income inequality and must be addressed in order to improve the situation. Income inequality is detrimental to societies because it decreases social mobility, health, and education. It creates economic instability and financial crisis. COVID-19 Has only increased the effects of income inequality.

Indonesia scores 37.9 on the Gini Coefficient. The score is notable. The country’s relatively poor education system and rates of children attending school impact its inequality. Without a complete education, it is difficult for Indonesians to increase their social status and break the cycle of poverty. The country’s geography results in much of the population living in rural areas. These areas have difficulties accessing resources, which contributes to inequality. Data from Statistics Indonesia (BPS) showed that the average monthly wage of male workers was Rp2.9 million (US$202) in 2021, while the female monthly wage was Rp2.3 million (US$160). While opportunities for women are ever-increasing, the wage gap is a huge issue that plagues Indonesia. COVID-19 has largely impacted poorer communities in Indonesia. It has increased income inequality between the poor and the wealthy. Many Indonesians lost their jobs due to the pandemic, leaving households still fragile though the worst of COVID is over. Generally, the poorest, most vulnerable communities in Indonesia are not getting their even distribution of wealth.

Indonesia seeks to reduce the gender wage gap, solve issues posed by COVID-19 on employment, and increase education. Income inequality will be decreased if barriers in education are dissolved. Better infrastructure connecting rural areas with important resources will eradicate the advantage of these regions. The country seeks to decrease its inequality for more prosperity and looks to other countries for ideas in the new policies.

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