Indonesia deals with unfair economic distribution: Minister

• Mar 23, 2018

National Development Planning Minister Bambang Brodjonegoro says the government is working to narrow the economic disparity among the regions as currently, economic activities are mostly centered in Java and Sumatra.

“We will focus on finding solutions on how to balance economic development between Java and other islands,” said Bambang in Jakarta on Thursday when announcing the Indonesian Development Forum (IDF), to be held on July 10-11.

“In the terms of size, Java is not too big, but in terms of the economic development, the island enjoys the biggest portion. It is unfair for other areas such as Kalimantan and Papua that are larger than Java.”

Economic activities in Java and Sumatra contribute 80.15 percent to the gross domestic product (GDP) with Java topping the chart with 58.49 percent contribution. Meanwhile, eastern Indonesia lags behind despite its potential. 

Bambang said the forum would discuss several key points to reduce the regional the economic gap — better connectivity between islands, innovation in local governance, smarter regional funding and unlocking the potential of the digital economy for regional development. 

The IDF will be attended by representatives of governments, civil society, academics and the private sector. 

The government aims to reduce the Gini ratio from 0.393 points to 0.36 by 2019. (roi/bbn)

Source: http://www.thejakartapost.com/news/2018/03/23/indonesia-deals-with-unfair-economic-distribution-minister.html