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The ultimate goal of development efforts is to increase the welfare of the community. One of indicator / measure is the better distribution of income.

The ultimate goal of development efforts is to increase the welfare of the community. One of indicator / measure is the better distribution of income. Evaluation tool for see the improvement/deterioration of the income distribution is the Lorenz curve where if the larger the arc area, the worse the income distribution will be. This is the area of Lorenz known as the Gini coefficient. We will look at the tables for the development of income distribution in DKI Jakarta Province (DKIJ). with the consideration that (1) DKIJ's economy has a big role in the economy national. DKIJ's economic output reaches 10% of the national economy's output. Simply put, for every 6 units of national economic output, 1 unit of which is produced by DKIJ's economy; (2) the population of DKIJ is very large with a density of 12,000 people per km2, about 110 times the population density of Indonesia (in 2000 only about 110 people per km2).

Look at table 5.1. Below, about the development of income distribution in DKIJ economy

DKI Jakarta Economic Gini Coefficient, 1997-2020 (Table 5.1)
Year 40% Income Lowest 40% Income Medium 20% Income Highest Ratio Gini
1997 19.80 35.0 45.20 0.34
1998 23.40 30.1 46.50 0.33
1999 21.40 38.9 39.70 0.32
2000 20.20 35.6 44.20 0.35
2001 21.80 37.0 41.20 0.31
2018 17.16 36.03 46.81 0.39
2019 17.30 36.09 46.61 0.39
2020 17.25 35.11 47.65 0.40

Look at table 5.2. below, about the cumulative figure of the income distribution on DKI Jakarta's economy.

Jakarta Capital City's Accumulative Income Distribution Figure, 1997-2020 (Table 5.2)
Year 40% Population 80% Population 100% Population
1997 19.80 54.8 100.00
1998 23.40 53.5 100.00
1999 21.40 80.3 100.00
2000 20.20 55.8 100.00
2001 21.80 58.8 100.00
2018 17.16 53.19 100.00
2019 17.30 55.39 100.00
2020 17.25 52.36 100.00

Look at table 5.3. Below, about the development of the economic production structure of DKIJ. The output of the national economy is measured by calculating the total GDP for a period certain. GDP calculates the total amount or value of the economy's production produced without distinguish who owns the factors of production. For the provincial level, the output is referred to as Product Gross Regional Domestic (GDP). One approach in the calculation is the approach production. Economic output is calculated by adding up the added value generated each sectors of economic activity which are grouped into 3 sectors: primary, secondary and tertiary.

Development of DKI Jakarta Economic Production Structure, 2000-2019 (GDP Prices Constraint 1993) (Table 5.3)
Economic Sector 2000 2001 2002 2017 2018 2019
PRIMARY SECTOR (Extractive) 0.2% 0.2% 0.2% 0.33% 0.33% 0.33%
Agriculture 0.2% 0.2% 0.2% 0.09% 0.1% 0.1%
Mining 0.0% 0.0% 0.0% 0.24% 0.3% 0.3%
SECONDARY SECTOR (Industrial) 34.5% 34.8% 33.9% 26.1% 25.7% 24.4%
Manufacturing 21.6% 21.9% 21.4% 13.4% 13.2% 12.3%
Electricity, Gas, Clean Water 2.1% 2.1% 2.1% 0.4% 0.4% 0.40%
Construction 10.8% 10.8% 10.4% 12.3% 12.1% 11.71%
TERTIER SECTOR (Services) 65.3% 65.0% 66.0% 73.6% 74.0% 75.3%
Trade, Hotel, Restaurant 23.8% 24.4% 24.3% 21.6% 21.7% 22.0%
Transportation & Communication 10.1% 10.5% 10.7% 11.3% 11.5% 11.9%
Finance & Building Lease 22.1% 20.8% 21.90% 16.8% 16.3% 16.5%
Services 9.2% 9.3% 9.0% 23.9% 24.5% 24.9%
TOTAL OUTPUT (PBRB) 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Questions:

5.a. Based on tables 5.1 and 5.2. above. What can you conclude? Describe your analysis 5.b. Based on table 5.3. above and the results of your analysis, what are the achievements of the DKIJ provincial government in terms of in terms of the distribution of income is fairly even (distributed equally for income groups lowest vs medium vs highest)? Describe your analysis 5.c. Based on your analysis, what can the Provincial Government of DKIJ do? Describe your analysis

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