Analysis of the Inequality on Inter-regional and Inter-time Income Distribution in Indonesia

This study aimed at measuring the level of inequality income distribution and its development in Indonesia. It employed the quantitative method by selecting data from the statistic center of Indonesia purposively. The data have been analyzed using path analysis. The results yield the following conclusions: First, the inequality of income distribution between islands in Indonesia is classified as medium and high inequality. The highest inequality in income distribution is in Java, while the lowest income distribution inequality is in Kalimantan; Second, provinces with lower levels of inequality in income distribution in Indonesia are the provinces of Riau, Jambi, Bengkulu, Lampung, West Java, Banten, Central Sulawesi, Gorontalo, and West Papua. Provinces with increasing inequality in income distribution are South Sumatra Province, DKI Jakarta, East Kalimantan, North Kalimantan, North Sulawesi, and North Maluku; Third, Sulawesi is the island with the highest level of income distribution inequality in rural and urban areas, while in Java, it has the highest level of distribution inequality in urban areas. Maluku and Papua are the islands with the highest level of distribution inequality in rural areas but they have a low level of inequality in urban areas. Besides, the island of Kalimantan also has a level of inequality of low-income distribution in rural areas. There is a significant difference in the Gini index between urban and rural areas in Indonesia, where urban areas have a high level of distribution inequality compared to rural areas; Fourth, there are significant Gini index differences before regional autonomy and after regional autonomy in Indonesia, where high-income disparities occurred after regional autonomy compared to the era before regional autonomy.