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Lecturer :
Dr. Yulhendri, S.Pd, M.Si
Rani Rahayu Nengsih (17053098)
Economic Education Class
Economic growth is the process of increasing per capita output in the long run. This economic
growth is also said to be the process of increasing GNP real or gross national product real. So that this
economic growth can describe a person's standard of living from the level of output or income they
have spent in decades.
Growth is one of the instruments of economic development. This is in accordance with the
expression of Adam Smith that development is an income process, two main aspects, namely total
output growth and population growth.
Not surprisingly, most ordinary people do not care too much about whether or not the
economic growth target is achieved, because they know how to live well, free from the shackles of
poverty, and get justice in this country, anyway. feel, for what they care about the name of economic
Because economic growth only addresses how much output growth or how much PNB is
received without questioning the largest source of contribution from the total output received. So it is
not surprising if one of the development indicators cannot be used as a reflection of the distribution of
income of a country. It is also not surprising, when a country experiences growth, the country will
also face the problem of inequality in income distribution, so that the rich the richer the poor the
poorer they become.
This distribution inequality can be seen from several approaches including through the
coefficient of correlation that exists. If the economic growth rate increases but the gini coefficient is
also large, this indicates poor economic growth, because it means the biggest contribution of uneven
growth or only from the elite group. So that even though a country experiences growth in the
economy but does not guarantee inequality does not occur. This imbalance occurs besides being
caused because the high gini coefficient is also due to the unfair distribution of national cakes enjoyed
by the Indonesian people. Besides this inequality also occurs due to the HDI (human development
index) or the level of human development, this can be measured based on the level of literacy,
education level, and quality of education. as stated by the deputy chairman of the national economic
and industry committee, Arif Budimanta, that "one of the efforts to reduce the level of inequality is to
increase the human development index (hdi) because they have mutual correlations".
Economic development is a business that must be done to increase national income (gross
national product), then divide the national income (GNP) to citizens fairly, the progress of the
industrial sector to absorb the high workforce and reduce unemployment and poverty (Todaro, 2004 )
When the national cake is not felt fairly, this is what is called economic inequality, where the
economy of the community is lame, and the gap between the poor and the people is increasingly
There are many factors or sources of economic inequality based on quotations from the book
Yulhendri where there are some factors that cause inequality, namely the first input factor market. The
supply of labor is increasing, especially in urban areas that are densely populated, while the available
employment is inadequate for all workers so this causes labor wages to decline or be low, limited
employment opportunities will result in the emergence of unemployment and slums in urban areas .
When the formal sector was unable to accommodate all migrations, it made them look for other
alternatives in the informal sector, 58% of which were agriculture, forestry, hunting and fishing, trade,
processing industry 6.84%, retail and restaurant 21.77%, transportation, warehousing and 4.82%
communication besides that most of the population working in the informal sector are those with low
education who only graduate from junior high school and even elementary school. Low educational
background with low informal sector workers, of course the income received will also be low.
Another source is land ownership that is not merara. Indonesia is a very large area with land
spread out of 17 thousand islands. But the problem is the distribution of land that is not evenly
distributed and not fair. This is a concern for every government from time to time, especially the
current government. Governments in this period were also committed to managing land distribution
by issuing policy policies covering agarial reform, accelerating the issuance of certificates of rights to
community land, and social forestry (ksp.co.id). Based on sukerenas data which showed that 49% of
households only mengola land as much as more than 0.2 hectares. This shows that a portion of
Indonesia's population only cultivates land that is not much while most of the land is controlled by
conglomerates. With a little land, of course productivity, or the results obtained are not how much
while Indonesia is an agrarian country where agriculture is one of the biggest contributors of GDP.
Land distribution is the main determinant of income distribution and the extent of poverty
In addition, the choice of capital also greatly influences the economic inequality of the
Indonesian state, increasing the productivity of human resources is determined by education and
individual expertise. The level of education of the population and the workforce is the main
determinant of the ability of human capital owned by a nation. The success of human development in
a country is determined based on the country's HDI (human development index). Based on BPS data,
in 2018 Indonesian HDI showed 70.81%, a stagnant number. In 2013 the Indonesian expectations for
BPS data showed figures of 70.07 and 94.14 for literacy rates, this needs to be appreciated because
the figure shows an increase from the previous year. Although this figure shows an upward trend but
still this increase is not very meaningful, because with the Indonesian HDI number 70.81% has not
been able to bring Indonesia to move from the rank of 113 out of 188 countries in the world. In
addition, based on direct information by CNN Indonesia, UNDP noted that there are around 140
million Indonesians living at less than Rp. 20 thousand per day and 19.4 million people suffering from
malnutrition. In addition, UNDP saw that nearly five million children were out of school and children
in Papua had high levels of schooling. So it can be concluded that the ability of human capital in
Indonesia is still low and this is one of the factors that causes economic inequality because the human
resources owned are unproductive and unable to compete, which makes them only able to work in
sectors with low income so that the impact on economic inequality.
In addition, an equally important factor in terms of income inequality is the well-known
Indonesian culture of the absence of a future orientation, quickly giving up and being slow. According
to the 1999 report, which I quoted from the yulhendri book, it was stated that among the high and low
income groups there was an initiative formed. The phenomenon shows that there is an imbalance in
income between low and high income groups of households. Few people but have many assets and
many people have few assets. This is the benchmark for economic conditions in this country.
Of the many inequalities that occur, the government needs to make efforts to overcome this
problem. There are several ways or efforts that can be taken to reduce the development imbalances
that occur, namely;
1. Equitable Development of infrastructure
Infrastructure is one measure of a country's development, and this infrastructure development
is always faced with inequality. At present the development of Indonesia is still concentrated on the
island of Java. Indeed this is still reasonable, because Java island is a population center, where the
largest population occupies the island of Java. However, even though the infrastructure center is on
the island of Java, inequality is still inevitable. For this reason, it is necessary to develop infrastructure
that is evenly distributed not only on the island of Java but throughout Indonesia.
In this millennial era, technological sophistication cannot be doubted, even in this era life is
easier, because the world feels in the grip. The internet is one of the leading icons in this era. But
ironically not all regions in Indonesia feel the convenience or benefits of the internet, this is again
caused by inadequate infrastructure. infrastructure is an important factor in the progress of a region's
development, for example road infrastructure, bridges, and even air and sea transportation. because
when infrastructure is adequate and equitable, all forms of activity will be easier. When infrastructure
is weak, it will hinder the development of a country and lead to a sense of injustice, for example, the
difficulty of the community in obtaining health facilities, or the difficulty of the country's children to
attend school because of difficult or expensive terrain constraints.
In addition to development inequality, another problem in infrastructure development is that it
is not uncommon for development in a region not to bring benefits and provide welfare for the people
in the area because the policies set are not in accordance with what is needed by the area (yulhendri).
Therefore development equality is one of the efforts made by the government to boost the
number of inequality in Indonesia. No exception is the current government. One manifestation of the
government's current efforts to flatten infrastructure is the manufacture of trans Papua. Actually, this
program is a continuation of the B.J Habibi program which was then resumed massively by the
present jokowi dodo government (CNN Indonesia). In addition to this program there are still many
other government program programs as a form of infrastructure distribution efforts in Indonesia.
2. Equitable education
Human resources is one of the important factors in the growth of a country, the quality of
human resources has a correlation with the level of education received, if education is well received
then of course the quality of human resources is also good. So that equal distribution of education is
one of the important efforts taken to overcome the imbalances that occur in Indonesia. One form of
inequality that occurs is poverty. This poverty is an implication of low human human capital, this is
because the quality of education received is also low. So that education needs to be done evenly
because when education in Indonesia is evenly distributed, the output of growth can be realized. So
that efforts to tackle the problem of poverty can be done by building quality human resources through
established education.
3. Equitable redistribution of land
Only a small part of the land is controlled by about 0.3 hectares of people, this is an indicator
of low productivity of farmers because the land they cultivate is small. The probability that land
cultivated by large farmers is expected to have implications for the income or income received by
farmers also increases. Because land is one factor in the formation of agricultural products
Most land tenure is controlled by the BUMN capital owner (Yulhendri). It can be concluded
that the higher the land area controlled by the authorities, the less income will be received by farmers.
Low productivity will again lead to inequality, because the ruler will get richer with the output he
receives from the land he owns and farmers will also be increasingly destitute of the low productivity
due to the limited land they have.
The relationship between the population and income distribution is very close, because the
population is a factor that determines the distribution of income in a country. There are several factors
that cause poor distribution of income in Indonesia, one of which is the increasing number of
employment (yulhendri), this increased labor force usually occurs in urban areas because of the
greater number of population than in rural areas, because life expectancy is better encourage them to
migrate from village to city so that they increase the population in the city. When the population in the
city increases, the automatic supply of labor also increases, while the availability of limited
employment opportunities results in unemployment and the creation of slums in urban areas. In
addition, more than 50% of the migration population works in the informal sector because of the
inability of the formal sector to accommodate all existing migration residents. From the explanation
above, it is very clear that with a low education background and informal sector employment, the
income can also be low. For this reason, the government must also regulate the population, and its
distribution, because if not, then there will be a problem like the one above.
The population will continue to increase from time to time, there are several factors, one of
which is the low level of education. education is one of the determinants of a person's quality of life.
If someone has a good education, then surely he will try to get a good quality of life too. So he will
use his mind and common sense in doing things and not just obeying lust alone. One example of a
problem that becomes a benchmark for someone acting in accordance with reason and mind or
according to lust is free association. Not a few young people are caught up in this bad association.
Many young people sacrifice their youth for things that are not good. Getting into drugs, getting
pregnant outside of marriage, brawls and so on. This is also an important pr government. Because
those who do so are also students. This is the question that might have crossed everyone. This is proof
that education in Indonesia has not been able to produce educated generations. Education is only a
formality of getting a diploma, or just a hereditary tradition, etc.
Of the many problems that occur, pregnancy outside marriage is one of the factors that lead to
the explosion of the population. Most of those who are pregnant outside of marriage are still underage
so that most of them have not been able and have not been able to be mentally or finascially able to
become mothers or become a family so the long tail of this problem is the generation that might have
made it a generation the same as the previous generation.
So basically the number of residents and the quality of the population determines the
distribution of income in a country when the population is high but the available employment is
limited which may be caused by several factors, one of which is a fixed land factor, this will create
problems such as unemployment, creation of slums, crime, and other problems. But this certainly can
be overcome by increasing human resources or improving the quality of the population itself through
education so that the government does not have to bother regulating the number of residents by
limiting the number of children or taking care of the easy generation not to fall prey to negativity but
the government need to improve quality education is not just a quantity so that later they themselves
will think which is good and what is bad both for themselves and for this country.
Group / personal desires or national desires? This is a question that is often asked most
favorably to the government elite when it comes to deciding something, especially deciding a policy.
In plain view, none of the Indonesian people do not want to see their developed countries free
from a circle of problems, especially poverty, including the government. Indonesia has a large
population, and each of them must have different thoughts even though they are different but surely
their initial goals remain the same namely how to make Indonesia a better country in the future. For
that they sent representatives who could represent all of these aspirations so that they were more
structured and targeted to achieve these goals. The representative is the government. The government
is a person who has been given the trust of the people to coordinate the country and build the country
and help this country to escape from various problems, one of which is poverty. But the fact that is
happening now is that not a few of those who betrayed tarnish the hopes of the people when they
succeeded in perching on the seat of government. Corruptors are a small example of how hearty
officials are to revenge the people who have chosen him in hopes of helping him out of various forms
of problems in this country.
But that does not mean that we look at the work done by the government so far, we need to
appreciate the efforts made by the government through policy policies to overcome problems in this
country. But the problem is that the government is not consistent with the policies made. Regardless
of the change in government, the policies that have also been taken, such as policies in education and
the welfare of the population, have changed. This inconsistency has made Indonesia stagnant since the
old order government until the present time of reform. Changes that exist are not significant and even
tend to remain this because the government is unable to be consistent with the policies that have been
made so that it does not provide meaningful benefits to the growth of this country.
In addition, not infrequently the policies or decisions taken cannot be separated from the
personal interests of some government elite groups, although not all but most are like that, because
someone's heart does not know except the owner of the heart, God and the person entrusted with
heart. Not infrequently the policies issued by the government are unfair and impressed only to fulfill
personal interests. For example the injustice of law enforcement in Indonesia, the law enforced in
Indonesia such as rubber law and some say law in Indonesia such as cone which is tapering over this
happens because of the importance of interest so that efforts to protect those interests by controlling
the law. Law firmly applies only to those ordinary people who do not have certain power and interests
but are lackluster laws for those who have certain power and interests. This has become evidence that
there are certain personal interests protected above national interests. Whether it's to enrich yourself
makes it easier for businesses or interests of other interests / groups.
Not a few governments give promises and expressions of expression that seem to care about the
people and they take refuge with it, even though in fact they only make it a protector to be able to reap
their own profits. The example of the government policy that is not really in the interests of the people
is the case of opening mining mines in Indonesia. Instead, it will have a good impact on the
surrounding population, but instead give birth to new problems. In fact, the mine is not entirely a good
influence for the community, it will bring harm to them. Most of the existing mines are controlled by
foreigners. It can be seen from the biggest investors or the biggest contributors to the project coming
from outside and Indonesia only as providers. Besides, the people only become unskilled workers in
the project. . The project should provide benefits to the community but on the contrary they lose the
land that is replaced with labor work which is absolutely nothing with the benefits earned by those
foreign and dirty officials.
So it is clear, that the policies taken by the government are not entirely for national interests
but there are interests of priadi or groups implied in it. Because if indeed the policy is intact only for
the interests of the people and the country, then of course there will be a change or improvement in
the resolution of the problems that occur.
All natural resources contained in Indonesia are owned by the state but only solely for the
prosperity of the people of Indonesia this is in accordance with those stated in article 33 paragraph 3:
"The earth and water and natural resources contained therein are controlled by the state and used as
much as possible prosperity people". The natural wealth includes land. Land is one component that is
included in government supervision. Land has an important meaning for the life of every human
being, everyone in his life and even after death needs land, both for agriculture, building, planting
forests and for other purposes ( Linda wati sulistiwati dan muhammad adib zain,2014). As explained
by Heru Nugroho that the importance of land has multi-dimensional coverage, namely First from the
economic side of land is a means of production that brings prosperity. Second, politically, land can
determine one's position in community decision making. Third, as cultural capital can determine the
high and low social status of the owner. Fourth, land means sacred because at the end of life everyone
will return to the land. Based on the description above, it is not surprising that the rulers of the land
will do anything to defend their rights and even expand the land they have.
For this reason, the government must take part in regulating land ownership in Indonesia,
because if not then there will be arbitrariness where the strong and capable can control the vast land as
well, or even the exploitation of the land as happened in the colonial period. The rules regarding land
ownership in the colonial period contain elements of exploitation and extortion of the rights of the
Indonesian people such as "wet agrarianism" which gives erpfacht rights giving large powers to
investors to use the land so that there is seizure of the people, as well as domeinverklaring which
states "for people those who are unable to prove eigendom rights (property rights) on their land, the
land belongs to the state ". So that the rules are corrected and the birth of the legal basis of the nation's
rights, namely UUPA (agrarian law) and the LoGA is a form of the landform agenda. This law
prioritizes the interests of most of the less fortunate, most of the workers and farmers, in the process
of nation-building. However, the implementation is not so, the law that emphasizes sectoral and
momentary interests. In addition, there are still cases of the same case during the colonial period
where ownership of land owned by them was large capital or power. The government also does not
seriously implement this regulation.
In addition, another case that shows the injustice of some of the rules made by the
government is the case of land ownership, in the latest regulation which allows the authorities to get
the right to control the land in the form of thousands of hectares of land for 75 years. This proves that
the country's unfairness in giving ownership rights. How about the farmers? Farmers who certainly do
not have the power and power either in terms of capital or rank, certainly cannot do anything, they are
only given the lure of encouraging people's plantation revitalization credits but the program cannot be
accessed by the people to the banks because the people do not have certificates land (yulhendri). In
addition, so far the government has not really been serious in realizing this landform in addition to the
complicated delivery mechanism, changes in social changes that have taken place in the government
have made this landform difficult to realize optimally from the old order to reform.
BPS,index pembangunan manusia from
Perangin-angin,Andria. (2014). Petani Melawan Negara dan Pengusaha
Sulistiawati Linda Yanti dan Muhammad Adib Zain. (2013). Tanah Dan Hukum Adat Di Indonesia
Todaro, michel P. 2003. Pembangunan Ekonomi,Edisi Indonesia. Jakarta: Erlangga. (alih bahasa :
harris munandar)
Yulhendri. 2009. Pembangunan Ekonomi Pasar,Struktur Ekonomi,Pendidikan Dan Pengurangan
Kemiskinan. Padang: UNP Press
Yulhendri. 2013. Pembangunan Modal Manusia Dan Modal Sosial. Jakarta: Lecture Publisher
Yuliyanna Fauzi. CNN Indonesia, (2017, 22-3-2017) from
Link INA