The World Bank has updated its global poverty threshold, raising the extreme poverty line of upper-middle-income countries like Indonesia from US$6.85 (2017 PPP) to US$8.30 per day (2021 PPP). In response, Indonesia’s national statistics agency (BPS) is currently reviewing its own poverty measurement methodology—expected to be finalized by the end of 2025.
But beyond poverty lines and Gini ratios, there’s a critical factor that must not be overlooked in any conversation about poverty standards: inequality.
In this edition, Mandala examines the two distinct yet interconnected dimensions of inequality—income and wealth—that shape the lived experience of economic hardship in Indonesia.
On income inequality,
we break down key data, including trends in Indonesia’s Gini Coefficient values and what it reveals about income distribution across the population.
On wealth inequality,
we explore how wealth—unlike income—accumulates across generations through inheritances, asset ownership, and capital gains, making disparities even more pronounced. We also look at how Indonesia compares globally in terms of wealth concentration.
As Indonesia moves to redefine what it means to be “poor,” both dimensions of inequality must be part of the policy equation.