A Reassessment of Inequality and its Role in Poverty Reduction in Indonesia

40 Pages Posted: 29 Nov 2005

See all articles by Daniel Suryadarma

Daniel Suryadarma

Australian National University (ANU) - Arndt-Corden Department of Economics; SMERU Research Institute

Rima Prama Artha

SMERU Research Institute

Asep Suryahadi

SMERU Research Institute

Sudarno Sumarto

SMERU Research Institute

Date Written: January 2005

Abstract

This study provides an overview of inequality trends in Indonesia for the period from 1984 to 2002. Different from previous studies on inequality in Indonesia, we use data on household consumption expenditure that takes into account price differentials across regions. We found that, although all measures indicate a decrease in inequality during the economic crisis, it actually increased for those below the poverty line. We also found that because inequality during the peak of the crisis in 1999 was at its lowest level in 15 years, the poverty rate decreased very rapidly during the recovery between 1999 and 2002.

Keywords: inequality, poverty, economic growth, Indonesia

JEL Classification: D63, I32, O15

Suggested Citation

Suryadarma, Daniel and Prama Artha, Rima and Suryahadi, Asep and Sumarto, Sudarno, A Reassessment of Inequality and its Role in Poverty Reduction in Indonesia (January 2005). Available at SSRN: https://ssrn.com/abstract=856764 or http://dx.doi.org/10.2139/ssrn.856764

Daniel Suryadarma (Contact Author)

Australian National University (ANU) - Arndt-Corden Department of Economics ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

SMERU Research Institute ( email )

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Jakarta, 10310
Indonesia
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62 21 31930850 (Fax)

HOME PAGE: http://www.smeru.or.id

Rima Prama Artha

SMERU Research Institute

Jl. Tulung Agung No. 46
Jakarta, 10310
Indonesia

Asep Suryahadi

SMERU Research Institute ( email )

Jl. Cikini Raya No. 10A
Jakarta, 10330
Indonesia

HOME PAGE: http://www.smeru.or.id

Sudarno Sumarto

SMERU Research Institute ( email )

Jl. Tulung Agung No. 46
Jakarta, 10310
Indonesia

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