Participants discuss before the opening of the Indonesian Development Forum held by the National Development Planning Agency together with the Australian Department of Foreign Affairs and Trade in Jakarta, Wednesday (9/8). The Indonesian Development Forum brings together domestic and foreign stakeholders to find solutions to the problems of Indonesia’s development. It carries the theme “Fighting Imbalance for Better Growth”.
The government has been challenged to work more aggressively and innovatively to reduce poverty and inequality, which is a difficult task.
The challenge was made during the Indonesian Development Forum in Jakarta on Wednesday and Thursday (Aug. 9 and 10). The international forum, which was initiated by the National Development Planning Ministry/National Development Planning Board (Bappenas), attempted to find innovative solutions through academic opinions and empirical experience from abroad and domestically.
Poverty and inequality are becoming increasingly difficult to tackle. The number of poor people since 2014 stands at 10.3 million to 10.6 million. The Gini coefficient, which measures inequality and in Indonesia is measured based on expenditure, slightly fell from 0.414 to 0.393.
Inequality does not always correlate with poverty. Rich nations also face the problem of inequality, when 1 percent of the population controls nearly half of the national wealth, such as in our country. To reduce poverty and inequality, more innovative ways are needed.
The government continues to improve programs to reduce poverty and inequality. Assistance for the poor, for example, has been changed into conditional help. Families that receive assistance are obliged to send their children to school, and if they have babies they have to participate in the basic vaccination program.
Village funds are intended to drive rural economies because poverty is the most severe and widespread in the villages. The government also provides free elementary and secondary school education and health services for the poor.
Bappenas has prepared programs to reduce poverty and inequality, such as to reduce the number of stunting among children cause by malnutrition as a result of poverty; stabilize food prices and direct subsidies; provide work through skill training; reduce wealth inequality through the mechanism of taxes and loans; and strengthen industry involving people, especially agriculture.
From the various cases of inequality that need to be resolved is inequality in opportunities as mentioned by Prof. Martin Ravallion from Georgetown University, the US.
Giving opportunities to the poor means a program has to be aimed at the target correctly. It should, among other things, make the labor market, land acquisition and loans work better for the poor; prioritize investment in infrastructure in poor regions, especially agriculture and rural development; omit bias in the policies of taxes, trade and state expenditure; and eliminate discrimination based on gender and race.
As a recipe to resolve poverty and inequality is available, its implementation needs commitment on the part of all stakeholders, including the business world and the public in general.
