In 2015, Indonesia stands as anincreasingly divided country, unequal in many ways. There isa growing income divide between the richest 10 percent andthe rest of the population, and this gap is driven by manyother types of inequality in Indonesia.People are dividedinto haves and have-nots from before birth. Some childrenare born healthy and grow up well in their early years; manydo not. Some children go to school and receive a qualityeducation; many do not. In today’s modern and dynamiceconomy; most do not and are trapped in low-productivity andlow-wage jobs. Some families have access to formal safetynets that can protect them from the many shocks that occurin life; many do not. And a fortunate few Indonesians haveaccess to financial and physical assets (such as land andproperty) that increase their wealth over time. This wealthis passed down from generation to generation, both in theform of money and physical assets, and through greateraccess to better health and education. As a result,inequalities are being compounded and deepened over time.This report asks why inequality is increasing, why itmatters, and what can be done. The first section examinesthe trend in inequality, which is already relatively high inIndonesia and rising more rapidly than in many neighboringcountries. The second section seeks to understand what isdriving rising inequality in Indonesia. The final sectionlooks at what can be done to prevent the country frombecoming even more divided. This section suggests ways toavoid an Indonesia in which relatively few people arehealthy, happy and prosperous, and many more can only aspireto a better life but are unable to attain it.
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