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

Answer rating: 100% (QA)

The tables provided show the development of income distribution and economic production structure in DKI Jakarta Province Indonesia from 1997 to 2020 ... View the full answer