Indonesia's Rising Gini Ratio Highlights Widening Economic Inequality
In March 2026, Indonesia's Gini Ratio, a measure of income inequality, increased to 0.368 from 0.363 in September 2025, according to the Central Statistics Agency (BPS). This rise indicates growing expenditure inequality, particularly in urban areas where the Gini Ratio reached 0.387, compared to 0.296 in rural regions. Despite a decline in the poverty rate to 8.07% from 8.25%, the economic growth of 5.29% in the second quarter of 2026 has not translated into sufficient formal job creation. The informal sector remains dominant, with 59.30% of the workforce engaged in informal employment as of May 2026. 
