Education in Indonesia, source: https://www.google.com/amp/s/www.edunews.id/edunews/pendidikan/pendidikan-indonesia-menyisakan-banyak-pr-untuk-pemerintah/amp/
Until now, economic inequality is still a problem of Indonesia. Along with the rolling of infrastructure and human development, apparently from the aspect of equity is still lame. The economic imbalance between the surplus and the deficit is also high. The proof, the economic cake is only enjoyed by a handful of residents who in fact control the national wealth and banking deposits. Swiss credit institutions data, Credit Suise, also put Indonesia in the 4th position as a country with the world's highest wealth disparity.
The indication is seen from the large percentage of national wealth owned by 1 percent of the sample of Indonesia's population that has a wealth of 49.3 percent of national wealth. Meanwhile, in plain view, poverty in Indonesia is still visible. If observed by rural and urban areas, poverty in Indonesia is declining. The percentage of people living below the 2006 rural poverty line of 21.8 percent fell to 14.1 percent in 2016. Similarly in urban areas, the percentage of people living below the 2006 urban poverty line was 13.5 percent, down to 7.8 percent by 2016 (BPS, 2017). Nevertheless, the magnitude of poverty levels contain a large imbalance. Especially when compared to between the Western Region of Indonesia (KBI) and Eastern Indonesia (KTI).
The percentage of poor people in KTI is double digit, while the percentage of poor people of KBI is only one digit. Based on data from the Statistics Indonesia (BPS) 2016, the percentage of poor people in Papua is 28.5 percent, West Papua 25.4 percent, East Nusa Tenggara 22.2 percent and Maluku also 19.2 percent. Inequality levels are also evident in high Gini ratio. In March 2014, the Gini Indonesia ratio was 0.406 points, rising in September to 0.414 points. The condition of inequality did decline in March 2016, which amounted to 0.397 points, but apparently there is a slowdown in the Gini Indonesia ratio. From the aspect of economic development too.
According to BPS (2016), 80 percent of Gross Domestic Product is dominated by KBI, while 20 percent is distributed by KTI regions. Economic growth also shows low quality. By 2016 economic growth is indeed reaching 5.02 percent, but the source of economic growth is still dominated by household consumption. This raises the question of which households share the economic growth. The economy continues to grow positively, but at the same time the decline in poverty is slowing as the population continues to increase.
Another aspect that is not less important to note is the development of Indonesian people. This aspect is evident from the size of the Indonesian Human Development Index (HDI). In recent years, HDI Indonesia has continued to improve. BPS noted that by province, there are three provinces with the fastest HDI growth, namely Papua at 1.40 percent, South Sumatra up 1.15 percent and East Java at 1.15 percent.
In contrast, there are also three provinces that experienced a slowdown in HDI growth, namely Riau (0.51 percent), West Kalimantan (0.44 percent) and Riau Islands (0.51 percent) (BPS, 2017). When sorted between KBI and KTI, on average the growth of HDI 2016 from the previous year is almost the same. The HDI growth of KBI region was on average 0.84 percent, while KTI was slightly higher at 0.88 percent.
Based on existing information, the reality shows that there is an inconsistency between the Gini ratio and the size of the Indonesian HDI. With positive economic growth and HDI overall ascending in 2016, poverty continues to slow as Indonesians grow. Therefore, a study of the magnitude of the correlation between HDI and the Gini ratios of KBI and KTI regions of Indonesia is desirable to obtain findings about economic disparities that are inconsistent with the increase in HDI as an indicator of development output. Starting from the background, some of the issues that will be discussed in this research are:
1. How is the overview of KBI and KTI regions based on Gini and HDI ratios?
2. How is the relationship between Gini and HDI ratios of KBI and KTI regions?
II. Research Purposes
Objectives to be achieved in this research, namely:
1. Knowing the overview of KBI and KTI areas based on Gini and HDI ratios.
2. Knowing the relationship between Gini and HDI ratios of KBI and KTI regions.
III. Theoretical basic
3.1. Theoretical Review
3.1.1. Inequality Inequality is an inequality due to differences in the distribution of welfare, whether economic, social, political, legal or security aspects. Inequality in the specific sense is an economic inequality between a place and another. Inequality occurs naturally or as a result of government policy. According to KBBI, inequality is a condition that is not as it should be, such as unfair or unfinished. Inequality other than in the general sense, there is a special social and economic inequality. Social inequality is a condition in which social imbalances occur in society. Unfair social conditions can result from unequal status and status in society, including differences in access to education and equitable economic development to reduce poverty. While economic inequality is more on how the mechanism of economic growth imbalances that in downstream can reduce the poverty level of a region.
3.1.2. Human Development Human development is a goal of complete national development. Human development basically explains two aspects, as well as the individual development process from the side of the livelihood, the wider human development has important aspects especially how to form human beings who have the expertise and creativity in various areas of life. The United Nations Development Program (UNDP) puts the human development dimension in two aspects: first, human capacity improvement consisting of longer life expectancy is supported by health, knowledge and improved living standards. Second, human development is seen as a condition that enables the creation of human development, including elements of human participation in politics and community, long-term environmental conditions, rights and security for every individual and the creation of gender equality and social justice.
3.2. Related Research
Inequality is a problem experienced by Indonesia today. The social and economic disparities have an impact on human development outcomes. This condition at least shows an interaction between indicators of economic inequality from the Gini ratio and human development indicators of the Human Development Index (HDI). Ravi Kanbur and Lyn Squire (1999) mentioned that HDI has an important relationship to the productive income capacity of a society. The poor use their energy to participate in the economy, but poverty due to social and economic inequality itself affects their reduced capacity to participate in the economy. As a result of low HDI, the poor are unable to take advantage of the opportunity to earn a productive income.
Efrilia Rita Utami (2017) in her research entitled Application of Generalized Spatial Three Stage Least Square (GS3SLS) On Spatial Simultaneous Equation for East Java Economic Growth Modeling. The research used spatial Autoregressive (SAR) GS3SLS method using HDI variable, Gini ratio and Economic Growth Rate (LPE). From the results of this study found that Gini ratio has a elasticity of 0.118 percent against HDI.
Astika Sa'diyah (2014) in his research entitled Analysis of Factors Affecting Human Development Index in West Nusa Tenggara Provincial and Random Effect Model (REM) method using PDRB variable, poverty rate, Gini and HDI ratio shows that Gini ratio has negative effect Against HDI. Similarly, Prawoto's (2011) study entitled Analysis of Influential Factors Against Human Development Index with variables used per capita expenditure, Gini ratio, proportion of non-food and food expenditure per capita and dependency ratio, one of the results shows that the ratio of Gini Have a negative and significant impact on HDI.
IV. Methodology and Data
4.1. Data Source
The data used in this study comes from the Central Bureau of Statistics (BPS). The period of data used in this research is annual to see the picture of gini ratio and HDI in West Indonesia and East Indonesia region.
4.2. Analysis Method
This study uses Pearson correlation to see the direction of relationship between gini ratio and HDI. Pearson correlation is one of the correlation measures used to measure the strength and direction of the linear relationship of the two veriabels.
Two variables are said to be correlated if the change of one variable is accompanied by another variable change, either in the same direction or the opposite direction. The value of small correlation coefficient does not mean the two variables are not related. It may be that two variables have a strong relationship correlation but the correlation coefficient value is near zero, for example in the case of non-linear relationship.
Thus, the correlation coefficient measures only the strength of the linear relationship and not on the nonlinear relationship. The existence of a strong linear relationship between variables does not necessarily mean there is a causality, cause and effect relationship.
Indonesia's HDI growth of 0.91 percent in 2016 compared to the previous year, 2015. If observed from each region, HDI growth in 2016 increases. Graph 1 shows that HDI growth in West Indonesia and East Indonesia is in line and there is no significant imbalance. Thus it can be said that the progress of human development in the area of West Indonesia and East Indonesia equivalent. In contrast to the development of HDI that is not visible inequality, the development of Gini ratio of West Indonesia and East Indonesia region looks lame in 2016 compared to the previous year. There are some areas that experience gini ratio changes quite extreme.
By 2016, most of West Indonesia has decreased gini ratio. This indicates that the social and economic divide in the West Indonesia region is increasingly depleted. However, it does not happen in eastern Indonesia that is the social and economic gap is widening. By 2016, gini ratios in Central Kalimantan are up 8.3 percent compared to the previous year, 2015. While gini ratios in North Sulawesi and North Maluku each increased by 4.4 percent and 5.3 percent. This shows that economic development in the region is only enjoyed by a few people.
The gulf between the rich and the poor gets wider. In 2016, the highest economic growth (y on y) was achieved by Transportation and Warehousing of 17.49 percent, electricity and gas procurement growing by 15.23 percent, and financial services by 11.87 percent. From the result of pearson correlation analysis between HDI and Gini Ratio region of West Indonesia and East Indonesia obtained correlation value of 8.8 percent. There is a relationship between HDI and Gini Ratio that is not linear. That is, improving the quality of human resources does not result in widening economic and social gaps.
VI. Conclusions and Recommendations
Based on the results of the analysis in this study it can be concluded that there is still inequality of development between the region of West Indonesia and East Indonesia. Inequality that occurred in the Eastern Indonesia region is greater. From these conclusions, the suggestion proposed in this research is the need for equal distribution of development in eastern Indonesia that can be enjoyed by all levels of society not just a handful of rich people.
Gujarati, Domadar N. 2004. Basic Econometrics. The McGraw: Hill Companies
Sugiyono. 2007. Metode Penelitian Bisnis. Bandung: Alfabeta.
Artikel ini ditulis oleh Joko Ade Nursiyono dan Henida Widyatama