Indonesia's Income Inequality Mirrors Japan's 1950s - Can It Change?
Large regional income disparities exist in Indonesia, even when excluding mining activities. In 1999, regional inequalities in per capita GDP and labor productivity were high. Japan, on the other hand, has much smaller regional inequalities. Indonesia's current regional inequality pattern resembles Japan's in the 1950s, with the primary sector having the smallest inequality. Japan successfully reduced its regional inequalities in the 1960s and 1970s by shifting GDP from the primary to the secondary sector. Whether Indonesia can do the same in the future is uncertain.