REPUBLIKA.CO.ID JAKARTA - An analyst predicts economic inequality is getting wider in Indonesia despite the country's ability to grow more than six percent.
"Economic growth will increase, but inequality will be worse," Director of the Institute for Development of Economic and Finance (INDEF), Enny Sri Hartati, said on Wednesday.
She analyzed that the increasing growth would come from high domestic consumption. With the population as many as 240 million people, Indonesia is a big market.
The economic growth in 2013 will also generate from investment. She predicted that investment would still concentrate in non-trade sectors which absorb less workers that trade sector.
The impact of the nontradable strategy is portrayed in the ratio of income inequality year to year. "The current value is 0.41. Next year it will increase because there will be no creation of employment opportunities," she said.
Chairman of Economic Assessment, Research, and Development Body of Chamber of Commerce and Industry (LP3E Kadin), Didik J Racbini, said that every stake holder must be aware of economic inequality. He also critized the continuing poor management of state budget.
"Year 2013 is a political year and a year after, Indonesia will face general election. The risk is getting bigger if government does not support business sectors," he said.