Examples of economic factors are uneven development between regions, lack of development of natural resources, and production factors. The amount of income per region can affect social inequality.
Poverty
Poverty is a condition of individuals or groups who are unable to meet basic needs, such as education, clothing, shelter, and food. Poverty occurs because of social and economic problems.
The Indonesian nation's most important homework that must be completed at this time is narrowing the gap and reducing inequality among its fellow citizens.
The issue of economic equity must be a priority, not only for the government but also for the private sector. Moreover, at the same time, the state is not only facing various economic problems, but also socio-religious problems such as radicalism and terrorism.
In case
Based on data released by the Central Statistics Agency (BPS), the Gini ratio in DIY reached 0.440, while the national one was 0.391. The Gini ratio in DIY increased from 0.432 in March 2017 to 0.440 in September 2017.
The DIY local government admits that this gap is high. The gap figures issued by BPS will be used as the basis for creating gap resolution measures. The local government will try to reduce the gap rate but will not set an exact figure for reducing inequality.
"We are targeting at least it can be below the national level. This means that we have an effort," said Yogyakarta Regional Secretary, Gatot Saptadi, at the Yogyakarta Kepatihan Complex, Wednesday (12/3/2017).
