From Access to Income: Regional and Ethnic Inequality in Indonesia

Daniel Suryadarma, Wenefrida Widyanti, Asep Suryahadi, Sudarno Sumarto
JEL codes: 
ISBN 979-3872-23-3

This study investigates regional and ethnic inequality in Indonesia from five dimensions: access to education and health facilities, education outcome, health outcome, voice, as well as income and consumption. We believe this is the first comprehensive study that looks at ethnic inequality in Indonesia. We find systematic inequality between urban and rural areas, but not between ethnic groups. Our results indicate that the voiceless rural areas have been left behind by urban areas that have more voice in every indicator. Although we do not establish causation, this finding supports the long-held view inherent among Indonesians. The findings of this study imply that public policy aimed at accelerating rural development is the most effective route to reduce inequality in Indonesia.