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Abstract
The start of national financial development gives the government a centre on taking care of the
economy similarly in both country and urban regions. In developing countries, there are many problems
that are often found, one of which is inequality in the distribution of income with rural and urban
income for each person. The approach utilized in this inquiry is subjective with a descriptive analysis.
The examination method utilized could be a writing look and case examination related to the substance
of breaking even with the dissemination of national wage calculate the Gini ratio for each region and
then involves calculating the amount required to calculate the Gini coefficient, which involves the
cumulative proportion of the population and the proportion of income received by that group and the
green economy concept. This consideration demonstrates seven vital steps in a green economy utilizing
macro-regional financial markers, specifically veritable to observing national wage dissemination. This
result depicts concepts of green economy, green development, and green development, essentially
planning to operationalize the linkages of financial, social, and natural columns within feasible
advancement.
Keywords: economic growth, green economy, Urban and rural ratio, Gini ratio
JEL Classification: E22, O15
occurs and the level of difficulty in overcoming it, Gini coefficient (Gini Ratio) measures how big the
which is influenced by the area and population. gap in the income distribution between residents
Income distribution is the distribution of is. In Indonesia, inequality is still a problem that is
income in society. In the production process, the often faced. The Gini index is a measure of
owners of the factors of production will receive aggregate inequality whose numbers range from
compensation for the factors that contributed to zero (perfect equality) to one (perfect inequality),
the production process. This income distribution where inequality refers to how far the income is
process will occur in a cycle (turnover) of distributed evenly among the people (Damanik et
consumers who must pay the price of goods. al., 2018).
However, at other times, it will be a provider of The track record of data on national
capital factors, labour, natural resources, or skill economic growth and inequality in income
factors so that, at certain times, it will receive a distribution can be seen through the Gini index
share of income and at other times will pay the per province, presented in Table 1 (Tim BPS,
price of goods. In the production process, each 2022).
provider of production factors will receive Table 1 shows that in March 2021, the level
compensation for services as follows: (1) Owners of inequality was 0.384. This figure decreased by
of natural resources in the form of land will 0.001 points compared to September 2020,
receive land rent, (2) Owners of labour factors will 0.385. The number increased by about 0.003
receive work wages, (3) Owners of capital will points compared to March 2020 (0.381). Based
receive capital interest, and (4) Entrepreneur will on the World Bank's measure of inequality, the
receive operating profit. In the 1990s, there was distribution of spending in the bottom 40 per cent
a shift in research from one previously concerned is 17.76 per cent. This explicitly shows that the
with economic growth, the identification of the population's expenditure in March 2021
determinants of economic growth, and the (Semester 1 2021) is in the category of low
convergence in per capita incomes across inequality level. If broken down by region, in
countries to one focused on the analysis of the urban areas, the figure was recorded at 16.81 per
distribution of income, its development over time cent, meaning it belongs to the category of
and the identification of factors determining the moderate inequality. Meanwhile, for rural areas,
distribution of income and the reduction of the figure was recorded at 20.68 per cent,
poverty. This shift is, among other things, a meaning it belongs to the category of low
reflection of the changes in technology and an inequality.
increased awareness of the growing disparity and The initiation of national economic growth
importance of income redistribution and poverty gives the government a focus on handling this
reductions (Heshmati, 2006). matter, especially since economic growth is not
Many problems are often found in only seen from the welfare side but needs to be
developing countries, one of which is inequality in studied through equity. This is essential in taking
income distribution. The problem of income strategic steps for the government to develop the
distribution measures the distance difference in economy equally in rural and urban areas. The
income between one individual and another principle of equal distribution of national income
individual; if this imbalance continues to occur is also one of the indicators of sustainable
between one group and another, then there will economic development in the national scope.
be a problem where economic growth is uneven. According to Permen et al. (Fauzi, 2004),
This inequality in the income distribution is called the considerations that make the economy must
inequality, and in measuring this inequality, the
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Inclusive green growth is the path to sustainable target can be achieved only by eliminating
development. Sustainable development provides subsidies that are not conducive to energy use
the context for green growth. Green growth is a efficiency. Elimination of fuel and electricity
subset or part of sustainable development. The subsidies has the potential to contribute almost
scope of green growth is narrower and covers the half of the target or approx. 6-7%. Moreover, to
operational policy agenda to help achieve concrete reach the 14% per cent target, the policy could
and measurable progress related to the economy be coupled with the imposition of indirect taxes
and the environment (OECD, 2011). in the carbon-pricing framework.
The definition of economic instruments, 5. The Policy Mix application combines "removal of
according to the OECD, is a form of fiscal incentives energy subsidies with imposing carbon
and disincentives or other types and incorporates prices/taxes.
environmental costs and benefits into household 6. Recycling the budget surplus through
and company budgets (Yusuf, 2012). The purpose of compensating poor households and increasing
using economic instruments is to encourage efficient production activities by reducing indirect taxes.
and environmentally friendly production and This has the potential to be quite effective in
consumption through full cost-pricing. Among the mitigating the impact of distribution and the
economic instruments included are sewage taxes, or impact of reducing employment opportunities in
fees on pollutants and waste, as well as deposit-
the short term.
refund systems and pollution trade permits.
7. The development of the green market can also
Anderson (Yusuf 2012) mentions some examples of
be utilized by developing instruments such as
economic instruments that can be applied in
carbon finance and green stimulus funds. In an
developing a green economy. These economic
increasingly carbon-constrained world, private
instruments include pollution/pollution taxes, input-
markets and public financial institutions are
output taxes, subsidies for environmentally friendly
activities, and the withdrawal of subsidies for likely to expand to support climate change
activities that harm the environment. Meanwhile, mitigation in developing countries. If the
the government's implementation of green economy placement mechanism is suitable,
measures is not just selecting policy instruments internationally and nationally, Indonesia could
from a list of green economy policy measures but be the primary recipient of the financing.
also looking back at the effectiveness of the Indonesia accounts for less than 2% of the Clean
implementation of these instruments. In this regard, Development Mechanism (CDM) market.
economic instruments that can be applied in In expansion, there are rebellious ways of
Indonesia include: observing the dissemination of financial pay through
1. Eliminate or reduce subsidies that harm the the green economy utilizing macro-regional financial
environment through fuel, electricity, and pointers, to be specifically veritable sparing.
fertilizer subsidies, among others. Veritable sparing can be calculated by subtracting
2. Payment for environmental services (PES): global national/conventional investment funds from the
PES (REDD+) and local PES depreciation/liquidation esteem of all sorts of
3. Inter-regional fiscal transfer capital, be it man-made capital and normal asset
4. Engineering energy-pricing mechanisms can be capital. The Veritable Investment Funds Rate
potentially effective in achieving emission calculation per territory in Indonesia can be
reduction targets. This has the potential if the categorized into three territorial classifications:
energy sector's contribution is a reduction of unsustainable, imperceptibly economical, and
14% relative to the baseline; almost half of the
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National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)
economical. Based on the Gini proportion table, it the vision and mission of the government's long-
can be compared and classified based on the Gini term arrangement have not been accomplished
record of each area, which is separated by rustic and ideally. In Indonesia, besides the complete world
urban zones that all areas in Papua, South Sulawesi, community, the Indonesian Government's approach
East Kalimantan, South Kalimantan, most areas on to accomplishing feasible advancement is carried out
Sumatra Island and NTB drop into the territorial through 4 (four) track methodologies, specifically
category the unsustainable. In the meantime, the pro-growth, pro-job, pro-environment, and pro-
areas that drop into the imperceptibly feasible environment advancement. The columns of
category are North Sumatra, West Sumatra, economic advancement appear to have parallel and
Lampung, Banten, West Java, Central Java, East Java, synergistic considerations with other advancement
Bali, Central Kalimantan, Gorontalo, Central techniques. The course of future advancement
Sulawesi, Southeast Sulawesi, and Maluku as it were arrangements will put more accentuation on the
four territories included within the economic proficient utilisation of common assets, minimizing
category, specifically the Territory of Yogyakarta, natural harm, lessening GHG outflows, and creating
East Nusa Tenggara, North Sulawesi, and West and actualizing clean products and advances, as of
Kalimantan. now more regularly alluded to as green economy
There is a need for the participation of the advancement, specifically a diminish within the
central and regional governments and the quality of common assets and natural capacity,
community in implementing these strategic steps on which is getting higher escalated. This suggests the
an ongoing basis. Economic equity in several regions, need for more arranged, coordinated, decentralized,
with the Gini index showing extreme levels of and participatory improvement administration by
inequality, is one of the focuses of local governments considering different improvement issues, including
in determining decision-making in implementing the mainstreaming the concept of sustainable
green economy. This also reduces the increase in improvement. In expansion, excellent natural
regional economic growth by preserving the area's administration expanded open mindfulness and
environment to provide the benefits of natural behaviour, essential in executing evenhanded
resources distributed to the next generation. conveyance of financial wage in provincial and urban
ranges through a green economy. To diminish that
E. CONCLUSION articulation, based on the investigative result of
Adepoju & Ogundunmade (2019), the experimental
The wonder of financial development that's comes about moreover recommended that budget
less than perfect with pointers of disparity in shortfall and outside obligation are adversely related
territorial wage gives a picture of the government in to financial development, recommending that
completing the uneven economic change. They have relying on domestic resources is the leading elective
typically appeared once more concerning the to back development and strengthen the significance
condition of characteristic assets, which is getting of sensible long-run growth-oriented approaches to
awful in their utilisation as crude and prepared get feasible development. This consideration aims to
materials for each commerce performing artist in a distinguish the determinants of financial
few locales. The reference to the long-term development of chosen nations employing a board
development vision stated in the (Undang-Undang information relapse approach. Also, recognise the
Republik Indonesia Nomor 17 Tahun 2007) is to factors contributing to financial development within
achieve an independent, advanced, just, and the Created, Creating, Slightest Created, Asian,
prosperous Indonesia. This speaks to the fact that
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National Income Towards Equity Though Green Economy (Gini Comparative Analysis of Urban and Rural Ratios)
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