Income Inequality and Socioeconomic Segregation in Jakarta

Abstract

Socioeconomic segregation has become a common phenomenon, both in the Global North and Global South, and highly relates to income inequality. The merging of these two notions affects the geography of residential areas which are based on the socio-occupational composition. This chapter focuses on the Jakarta Metropolitan Area (JMA). Not only is Jakarta the largest metropolitan area in Southeast Asia, it is also one of the most dynamic. Batavia, the colonial capital of the former Dutch East Indies in the first half of the twentieth century, was a small urban area of approximately 150,000 residents. In the second half of the century, Batavia became Jakarta, a megacity of 31 million people and the capital of independent Indonesia was beset with most of the same urban problems experienced in twenty-first-century Southeast Asia, including poverty, income inequality, and socioeconomic segregation. This study aims to identify the correlation among income inequality, socioeconomic segregation, and other institutional and contextual factors which caused residential segregation in JMA. The analysis consists of two stages. First, we examine income inequality measured by the Gini Index as well as the occupational structure based on the International Standard Classification of Occupations (ISCO). Second, we investigate residential segregation by using the Dissimilarity Index as a result of socioeconomic intermixing in residential areas. The data in this study comes from multiple sources including Indonesia’s Central Bureau of Statistics, Indonesia’s National Socio-economic Survey (Susenas), Indonesia’s Economic Census, Jakarta’s Regional Bureau of Statistics, and policies related to the housing system and investment in the JMA. This study also produces maps of socioeconomic segregation patterns from several sources including Jakarta’s Geospatial Information Centre, Jakarta’s Spatial Plan Information System, and the Indonesian Poverty Map by the SMERU Research Institute.

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