Saturday, June 30, 2012

Indonesia's Inequality

If in the words of Gandhi ”poverty is the worst form of violence,” then the Indonesian government is accountable to some 120 million out of the country's of 240 million citizens  live on less than two dollars a day. The Indonesian government, which sets the poverty line at 7,800 rupiah (about 86 U.S. cents) per day – less than half that of the World Bank, which defines poverty in Indonesia as living on less than two dollars a day.

In a country where rice – the must-have staple of the Indonesian diet – costs the equivalent of 85 U.S. cents per kilo, even this basic commodity is out of reach of the myriad poor. A cheapest meal of rice egg and vegetable at a roadside food stall, costs 10,000 rupiah (one dollar).

“Many low income workers in Indonesia are only able to eat once per day. They will have fried banana for breakfast and a simple meal of noodles for lunch and maybe another banana for dinner,”
said Binny Buchori, senior adviser for The Centre for Welfare Studies in Indonesia.

Indonesia’s malnutrition has resulted in moderate to severe stunting in 40 percent of children under age five, according to a report by the Save the Children.

Boasting Southeast Asia’s largest and fastest growing economy expensive shopping malls, luxury cars and high rise buildings are mushrooming in the country but equally growing are the number of slums and beggars. The Asian Development Bank says that Indonesia is the only country in Southeast Asia where poverty is on the rise, despite a 6 percent economic growth.
The combined wealth of Indonesia’s 40 richest people is equivalent to that of about 60 million of its poorest citizens, or more than 10 percent of its GDP, according to recent statistics.  
“Despite the rhetoric about middle classes contributing to growth in Indonesia, 82 percent of the population is living on less than four dollars a day, and they account for 58 percent of household consumption,” according to a report by Standard Chartered.

“Wealth and poverty are both on the rise.”
said Buchori.

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