Unequal Impact of Price Changes in Indonesia

Rulyusa Pratikto, Mohamad Ikhsan, Benedictus Raksaka Mahi


The main idea of this study is to determine the impact of relative inflation on poverty incidents and to investigate whether inflation inequality has occurred in Indonesia. Interesting results were found at regional level. Firstly, Jakarta had different poverty response with respect to price increases. Processed food and transportation inflation were more imperative for the poor in Jakarta. Secondly, the poor in province with low poverty figures were more prone to inflation. In general, the results show that food inflation has the major adverse impact on the poor. Moreover, we found that inflation in Indonesia has not been pro-poor.


Tujuan utama dari penelitian ini adalah untuk menentukan dampak dari perubahan harga terhadap kemiskinan, serta juga untuk mengetahui apakah terjadi ketimpangan inflasi di Indonesia. Hasil yang menarik diperoleh dari analisa pada tingkat provinsi. Pertama, kemiskinan pada provinsi Jakarta memiliki karakteristik yang berbeda. Inflasi pada makanan jadi dan transportasi justru memiliki dampak yang lebih merugikan masyarakat miskin. Kedua, masyarakat miskin yang berada di provinsi dengan tingkat kemiskinan relatif rendah justru lebih sensitif terhadap inflasi. Secara umum, inflasi bahan makanan merupakan faktor terbesar dalam peningkatan kemiskinan. Selain itu, masyarakat miskin telah mengalami total inflasi yang lebih besar dibandingkan dengan masyarakat tidak miskin.

Kata kunci: Kemiskinan; Inflasi; Elastisitas Harga terhadap Kemiskinan; Pro-Poor Price Index; Price Index for the Poor

JEL classifications: E3; I3; O1; R2


Poverty; Inflation; Price Elasticity of Poverty; Pro-Poor Price Index, Price Index for The Poor

Full Text:



Agenor, PR, Izquierdo, A & Henning TJ 2007, Adjustment Policies, Poverty, and Unemployment: The IMMPA Framework, Blackwell Publishing Ltd., USA.

Agenor, PR, Fernandes, R, Haddad, E, & Henning TJ 2007a, Stabilization Policy, Poverty, and Unemployment in Brazil, In Agenor, PR, Izquierdo, A & Henning TJ 2007, Adjustment Policies, Poverty, and Unemployment: The IMMPA Framework, Blackwell Publishing Ltd., USA.

Bappeda Papua 2013, Karakteristik Penduduk Miskin Provinsi Papua, Badan Perencanaan Pembangunan Daerah, Provinsi Papua, Indonesia.

BPS 2012, Farmers Term of Trade Statistics 2012, Badan Pusat Statistik – Statistics Indonesia.

BPS 2013, Consumer Price Indices in 66 Cities in Indonesia (2007=100) 2013, Badan Pusat Statistik – Statistics Indonesia.

Darmaningtyas 2004, Pendidikan yang Memiskinkan, Galang Press, Yogyakarta.

Dartanto, T, 2010, ‘Volatility of World Rice Prices, Import Tariffs and Poverty in Indonesia: a CGE-microsimulation Analysis’, MPRA Paper 31451, University Library of Munich, Germany.

Dartanto, T & Usman 2011, ‘Volatility of World Soybean Prices, Import Tariffs and Poverty in Indonesia’, Margin: The Journal if Applied Economics Research, National Council of Applied Economic Research, Vol. 5(2), pages 139-181.

Easterly, W & Fischer, S, 2001, ‘Inflation and the Poor‘, Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(2), pages 160-78.

Erosa, A & Ventura, G, 2002, ‘On Inflation As A Regressive Consumption Tax’, Journal of Monetary Economics, Vol. 49, pages 761-795.

Fujii, T, 2011, ‘Impact of Food Inflation on Poverty in the Philippines’, Research Collection School of Economics, Singapore Management University.

Foster, J, Greer, J & Thorbecke, E, 1984, ‘A Class of Decomposable Poverty Measures’, Econometrica, Vol. 52, No. 3., pp. 761-766.

Howitt, P 1990, ‘Zero Inflation As A Long-Term Target For Monetary Policy’, C. D. Howe Institute Working Paper, Toronto, Canada.

IMF 2006, ‘Inflation Targeting and The IMF’, International Monetary Fund.

Karisun 2010, ‘Analisis Pelaksanaan Bantuan Operasional Sekolah (BOS) Di MTs Negeri Wonosari Gunung Kidul Yogyakarta’, Thesis, National Islamic University of Sunan Kalijaga.

Marty, AL, & Thornton, DL, 1995, ‘Is There A Case for ‘Moderate’ Inflation?’, Federal Reserve Bank of St. Louis Review, July/August 77(4), pp. 27-37.

Radhakrishna, R & Ravi, C, 1992, ‘Effects of Growth, Relative Price and Preferences on Food and Nutrition’, Indian Economic Review, Department of Economics, Delhi School of Economics, vol 27.

Ravallion, M & Datt, G, 2002, ‘Why Has Economic Growth Been More Pro-Poor in Some States of India Than Others?’, Journal of Development Economics, vol 68, pages 381-400.

Shiller, RJ, 1996, ‘Why Do People Dislike Inflation?’ Discussion Paper No. 1115, Cowles Foundation for Research In Economics, Yale University.

Son, HH & Kakwani, N, 2009, ‘Measuring the Impact of Price Changes on Poverty’, Journal of Economic Inequality, Volume 7, Issue 4, pp 395-410.

Yusuf, AA, Sumner, A & Rum, IA, 2013, ‘The Long-Run Evolution of Inequality in Indonesia, 1990-2012: New Estimates and Four Hypotheses on Drivers’, Center for Economics and Development Studies, Department of Economics, Padjadjaran University.


  • There are currently no refbacks.