Because of Covid-19, People's Income has Decreased, Inequality is Increasing

TRIBUNBATAM.id - The Central Statistics Department (BPS) reported an increase in the level of population inequality or the Gini ratio in March 2020. 

The head of BPS, Suhariyanto, said that the Gini ratio in March 2020 was 0.381, an increase of 0.001 points compared to the Gini ratio in September 2019 of 0.380. 

However, when compared to the same period last year, where the March 2019 ratio was 0.382, it decreased 0.001 points.  

Suhariyanto also explained, the coronavirus pandemic (Covid-19) was a factor causing an increase in the gini ratio. 

"In March 2020, the Gini ratio rose slightly, from 0.380 to 0.381 and this increase occurred in cities and villages. Why did it happen? Because Covid-19 made the income of all levels of society decline, "said Suhariyanto in a virtual press conference, Wednesday (07/15/2020).

Because the value of the Indonesian gini ratio during the period March 2013-September 2014 has fluctuated and began to decline in the period March 2015 to September 2019. 

This condition shows that during the period March 2015 to March 2019 there was an improvement in the distribution of expenditure in Indonesia.

"However, due to the Covid-19 pandemic, the value of the Gini ratio has again increased in March 2020," he said. 

In more detail explained, the Gini ratio in urban areas in March 2020 was 0.393. This shows an increase of 0.002 points compared to September 2019 which amounted to 0.391 and an increase of 0.001 points compared to March 2019 which amounted to 0.392.

For rural areas, the gini ratio in March 2020 was recorded at 0.317, an increase of 0.002 points compared to September 2019 and unchanged compared to March 2019.

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Gini ratios in rural areas in September 2019 and March 2019 were recorded at 0.315 and 0.317, respectively. 

In addition to the gini ratio, another measure of inequality that is often used is the percentage of expenditure in the lowest 40 percent population group, known as the World Bank size.

Based on this measure, the level of inequality is divided into 3 categories, namely the high level of inequality if the percentage of expenditure of the population group is below 40 percent, the rate is below 12 percent, moderate inequality if the rate ranges from 12-17 percent, and low inequality if the figure is above 17 percent . 

In March 2020, the percentage of expenditure in the lowest 40 percent group was 17.73 percent which means it was in the low inequality category. 

This condition increased when compared to September 2019 which amounted to 17.71 percent and March 2019 which amounted to 17.71 percent.