[Post 1171] 50 Wealthiest Indonesians Richer Than Bottom 50 Million: Inequality in Indonesia | Insight

Summary

According to Oxfam, inequality is rising in Asia. The richest 10% of Asians capture 60% - 77% of national income. The poorest half? Just 12% - 15%. 

September saw protests across Indonesia, partly driven by cost-of-living issues and out-of-touch elites. According to Oxfam, in the past two decades, the gap between the richest and the rest of Indonesia has grown the fastest of any Southeast Asian country. 

Additionally, there is wealth disparity across regions, as the country's post-COVID growth has not touched all areas equally. Eastern Indonesia, driven by mining, boomed, while rural areas in Sumatra and Java lagged behind as manufacturing suffered. 

Amidst all these, President Prabowo has pledged to alleviate inequality, promising a more inclusive economic model and slammed what he called "greedy" business practices. He has rolled out a range of social measures to reduce inequality, such as a free meals programme. But at the same time, he has reduced the government budget and offered low-interest loans to conglomerates, which some say favours the wealthy. 

Will the push to reduce inequality work? Or will the wealth disparity continue to widen in the archipelago?