In Indonesia, poverty has been declined since 2006 from 17.75% to 9.41% in 2019 due to strong economic growth and other poverty reduction efforts. The inequality, however, remains considerably high. Since 2010, Indonesia’s Gini ratio remains above 0.38. The poverty and inequality situation has been worsen post-pandemic. Indonesia’s headcount poverty rate back to double digit, 10.14% in 2021, while the Gini ratio climbed to 0.384, its highest rate since 2018. While focus on economic inequality is important, the picture of inequality in Indonesia should be assessed through a multi-dimensional aspect, not limited to households income or expenditure. 

Indonesia is a fourth most-populous and also the largest archipelagic country in the world. It makes any policy context should be assessed carefully throughout population groups, income class, and geographical location due to the difference in the provision of public infrastructure and policy efforts within the country. As such, a comprehensive inequality diagnostic report is needed to assess overall condition of inequality in Indonesia not only using monetary indicator (income or expenditure), but also social assets, in terms of access to education, health, water and sanitation, employment, and other basic infrastructures needed for households. 

The Extension of the Research Facility on Inequalities will cooperate with leading research center, LPEM FEB UI, and national statistical office, BPS, to conduct comprehensive inequality assessment and produce an inequality diagnostic report as the basis for launching a national dialogue about inequality and stimulate policy interventions to overcome inequality.

Find out more about the Extension in Indonesia

The objectives of the Inequality Diagnostic Research in Indonesia are: 

1. to produce a working paper which will consolidate data and resources (papers) around inequality issues to profile the prevailing situation of inequality in Indonesia.
2. to conduct capacity building activities for national research center and the national statistical office in performing data analysis for the Inequality Diagnostic Research Report.
3. to introduce specific tools for multidimensional inequalities diagnostic in Indonesia.

This research has led to a comprehensive Inequality Diagnostic Research Report in Indonesia and contributes to public debate and discussion on Inequality in Indonesia. Indeed, this project performed a thorough analysis of multi-dimensional aspect of inequality in Indonesia and a comprehensive breakdown based on income groups, geographical locations, and gender. It also includes analysis of prior policies that have been taken by the government to reduce inequality and how it performs overtime. The output of this research will help government to identify priorities and policy options in order to further reduce them.
 

You will find below the research publication related to this project:

• The Inequality Diagnostic Report: Indonesia

Read the press release: LPEM FEB UI, AFD, and BPS Release the Inequality Diagnostic Report for Indonesia 2023

• Oskar Lecuyer, AFD Research Officer
• Emmanuel Fourmann, AFD Research Officer

MPAs are often associated with high poverty, being by design targeted at relatively untouched areas with low economic potential. Establishing an MPA can thus create a financial and social burden on resource-dependent communities, even if the benefits of doing so would bring higher yields or revenue in the future. Some stakeholders may benefit greatly from commercial activities (e.g., tourism, sale of higher-value products), while at the same time others are left out of the management processes, sometimes even those having most at stake. 

Because MPAs will most likely affect user groups disproportionately, inequality issues among stakeholders can easily arise.  Some aspects of MPA design, implementation, and management may contribute to positive ecological and well-being outcomes, while others will require tradeoffs. This coexistence of both co-benefits and trade-offs among stakeholder groups leads to tricky questions of equity, justice, and power in the design, implementation, and management of MPAs. There is a general lack of knowledge regarding how inequalities influence MPA outcomes. 

In brief, MPAs are a driver of inequalities in communities that rely heavily on marine resources, and a powerful tool to help reduce them. While being an important aspect of the well-being of the people involved and of the success of MPAs, inequality assessments and metrics are currently largely absent in the design, implementation and management of MPAs. This research project aimed at a deeper understanding of the inequality dynamics in MPAs in Indonesia, drawing upon existing data and specific case studies. It helped us gain better knowledge of how inequalities influence biological and social outcomes in MPAs, and brought insights on how to integrate inequality assessments and indicators in existing MPA policies in the country, at every level of governance.

This project is part of the Extension of the EU-AFD Research Facility on Inequalities (RFI). Coordinated by AFD and financed by the European Commission, the Extension of the RFI will contribute to the development of public policies aimed at reducing inequalities in four countries: South Africa, Mexico, Colombia and Indonesia over the period 2021-2025.

This project first went through a scoping phase which enabled to better understand the role of MPAs and its link to inequalities. It then aimed to develop a framework for analyzing inequalities and their dynamics in MPAs in Indonesia, and a toolbox for mainstreaming inequalities in the design, implementation and management of MPAs. It has also fed into the policy dialogue conducted by the EU and AFD on marine resource management and environmental protection. 

This project therefore results in: 

• A working paper summarizing the current knowledge on marine protected areas and inequalities in Indonesia (carried out by LPEM).
• An in-depth research project on the links between inequality reductions and the management of marine protected areas, including cases studies of three MPAs (performed by the SMERU Institute).
• Training and capacity building activities with practitioners and MPA managers on the inclusion of inequalities in MPA management practices.
  
   

You will find below the different research papers related to this project :

• The benefits of Marine Protected Areas in fighting inequality and fostering environmental sustainability in Indonesia
• Balancing conservation and community welfare: Enhancing the management of Marine Protected Areas in Indonesia

Watch the replay of the "Research Conversations" webinar on this topic (July 2023) :

Contacts: 

• Oskar Lecuyer, AFD Research Officer
• Emmanuel Fourmann, AFD Research Officer