Indonesia's income inequality widens despite poverty reduction, BPS reports

Indonesia is experiencing a widening gap between its rich and poor populations, even as the overall poverty rate declines. Data from the Central Statistics Agency (BPS) reveals that the Gini Ratio, which measures income inequality, increased to 0.368 in March 2026.

This figure represents a rise from 0.363 recorded in September 2025, indicating a growing disparity in wealth distribution. The BPS noted that inequality is more pronounced in urban areas, with a Gini Ratio of 0.387, compared to 0.296 in rural areas. Both urban and rural inequality levels saw an increase from the previous period.

Concurrently, Indonesia has made progress in poverty reduction. The poverty rate dropped to 8.07% in March 2026, down from 8.25% in September 2025. This translates to a decrease in the number of poor individuals from 23.36 million to 22.93 million over the same six-month period. The national poverty line was set at Rp 669,235 per capita per month in March 2026.