Inequality widens as Indonesia's economy booms

A prominent Indonesian economist says the country's booming economy is further disadvantaging the millions of poor people in the country.

The latest figures from Indonesia's statistics bureau show the country's economy is growing at about 6.4 per cent, which is nearly double Australia's growth and second only to China.

Dr Hendri Saparini says the latest economic figures for her country show a good stable economy, but it is not helping everyone.

Dr Saparini says the top 20 per cent hold 80 per cent of the country's wealth.

She says most of the growth is coming from strong domestic demand.

"Sixty per cent is because of the private consumption and most of [it only comes] from the wealthy people in Indonesia," she said.

Dr Saparini says the gap between the rich and poor is widening.

"We need the strategy where the poor people can also benefit from this economic activity," she said.

The government plans to reduce tariffs on commodities to cut the cost of living, but Dr Saparini says a new strategy is needed to provide jobs.

The bureau's Dr Kecuk Suhariyanto says the growth is being driven by consumer demand, investment and government spending.

But he says the benefits are not flowing to everyone.

"The affect to poverty, I will say, is not very good," he said.

Questions:

• How does Karl Max have to do with poverty and Inequality? How does he support Poverty and Inequality?
• How is this related to GDPand GNI?
• How poor is indonesia beased on this article?
• Why is it that Poverty and inequality are rising amid the pandemic ?
• How can we relate poverty and inequality with neoclassical labor?
• Can we relate this article with Karl Marx and his surplus- value ?
• Why is this article related to Karl Marx and his mandatory production economy?
• Can we say that Karl Marx is right about this? Explain