World Bank2016-08-022016-08-022016-03https://hdl.handle.net/10986/24765In 2015, Indonesia stands as an increasingly divided country, unequal in many ways. There is a growing income divide between the richest 10 percent and the rest of the population, and this gap is driven by many other types of inequality in Indonesia.People are divided into haves and have-nots from before birth. Some children are born healthy and grow up well in their early years; many do not. Some children go to school and receive a quality education; many do not. In today’s modern and dynamic economy; most do not and are trapped in low-productivity and low-wage jobs. Some families have access to formal safety nets that can protect them from the many shocks that occur in life; many do not. And a fortunate few Indonesians have access to financial and physical assets (such as land and property) that increase their wealth over time. This wealth is passed down from generation to generation, both in the form of money and physical assets, and through greater access to better health and education. As a result, inequalities are being compounded and deepened over time. This report asks why inequality is increasing, why it matters, and what can be done. The first section examines the trend in inequality, which is already relatively high in Indonesia and rising more rapidly than in many neighboring countries. The second section seeks to understand what is driving rising inequality in Indonesia. The final section looks at what can be done to prevent the country from becoming even more divided. This section suggests ways to avoid an Indonesia in which relatively few people are healthy, happy and prosperous, and many more can only aspire to a better life but are unable to attain it.en-USCC BY 3.0 IGOHOUSEHOLD INCOMESNEW MARKETEMPOWERMENTRISKSFINANCIAL SERVICESRECEIPTECONOMIC GROWTHVILLAGESSOCIALIZATIONFINANCIAL RESOURCEPEOPLEFINANCINGECONOMIC SECURITYVILLAGEMINIMUM WAGEINFORMATION TECHNOLOGYINTERESTANTENATAL CAREPREVENTIONLAWSEQUITABLE ACCESSINCOME- GENERATING ASSETFINANCIAL RESOURCESINEQUALITIESHEALTH CAREREVENUESFISCAL POLICYWELFAREHEALTHSUBSIDYINCOME TAXCORRUPTIONSMART CARDPAYMENTSSAVINGLABOR FORCE SURVEYNEW BUSINESSPUBLIC HEALTHSAFETY NETSKNOWLEDGEDISABILITIESPUBLIC POLICYLABOR MARKETFISCAL POLICIESCREDITSINDIVIDUAL ACCESSSAVINGSTECHNICAL ASSISTANCEIRONIMMUNIZATIONSTERILIZATIONPATIENTSPATIENTEDUCATIONAL ATTAINMENTSECONDARY SCHOOLSACCESS TO INSURANCEPUBLIC FUNDSFOOD PREPARATIONVULNERABLE HOUSEHOLDSSCHOLARSHIPSAGINGNURSESMIGRATIONVIOLENCEPAYMENTFISCAL RESOURCESSCHOLARSHIPLIMITED ACCESSHOUSEHOLD INCOMELEARNING OPPORTUNITIESDISASTERSSOCIAL SECURITYPOOR ACCESSENTERPRISESHIGHER EDUCATION LEVELSSOCIAL DEVELOPMENTUNEQUAL ACCESSASSET ACCUMULATIONMORTALITYEQUAL OPPORTUNITIESFINANCEMINIMUM WAGESENROLMENT RATESEDUCATION SPENDINGENTREPRENEURIAL ACTIVITYFISCAL DEFICITPRIMARY SCHOOLSEXPENDITUREUNIONSUNEMPLOYMENTEQUITYINCOME TAXESHUMAN CAPITALSOCIAL INEQUALITYDIPHTHERIAYOUNG ADULTSWORKERSINFORMAL WORKERSCAPITALYOUNG WORKERSIUDSEQUAL ACCESSAGEDLACK OF ACCESSSTUDENTEDUCATION LEVELSFAMILYACCESS TO FINANCEGENDERBANKINCOME-GENERATING ASSETCREDITHEALTH OUTCOMESHYGIENEFINANCIAL INSTRUMENTSHEPATITIS BHOUSEHOLDFAMILY PLANNINGEDUCATION LEVELEXPENDITURESCREDIT INFORMATIONPROPERTYEARLY CHILDHOODPROPERTIESJOB CREATIONEMPLOYMENT GROWTHCHILD NUTRITIONPHYSICAL ASSETSNUTRITIONACCESS TO MARKETSEMPLOYERSADOLESCENTSQUALITY OF LIFEPRIMARY HEALTH CAREINTRAUTERINE DEVICESACCREDITATIONINSURANCE PREMIUMSGOVERNMENT POLICIESWEIGHTPHYSICIANSECONOMIC DEVELOPMENTPREGNANT WOMENEMPLOYERCHILDRENSECURITYCLINICSINVESTMENTEXTREME POVERTYIDHEALTH FOR ALLHOUSEHOLDSACCESS TO SERVICESEQUALITYPROFESSIONAL DEVELOPMENTFINANCIAL ASSETSEMPLOYEEHEAD OF HOUSEHOLDREVENUEPOLIOEARNINGSSTUDENTSINVESTMENTSBORROWINGFINANCIAL SUPPORTGREATER ACCESSLIVING CONDITIONSVULNERABLE CHILDRENSTRATEGYEDUCATIONAL LEVELSCHILD HEALTH SERVICESFAMILIESWOMENOUTREACHMEDICINESHOSPITALSLABOR MARKETSBIRTH ATTENDANTHEALTH SERVICESIMPLEMENTATIONPREGNANCYABORTIONLABOR MARKET LEGISLATIONGUARANTEENURSINGBREASTFEEDINGINEQUALITYCREDIT MARKETEMPLOYEESWorking PaperWorld Bank10.1596/24765