REGIONAL INEQUALITY ACROSS DISTRICTS IN KALIMANTAN, 2000 – 2012: IS KUZNETS HYPOTHESIS PREVAIL IN KALIMANTAN?

Abstraksi

As a matter of development, inequality cannot be completely eliminated. The income inequality will remain. Regional inequality in Indonesia occurs because the central government controls and controls most of the regional revenues set as state revenue. Development is still concentrated in the West Indonesia Region, especially in Java Island. Indonesia's economic structure is still spatially concentrated KBI about 80-81 percent. Eastern Region of Indonesia (KTI), as a suburb, only gets the rest, which is about 19-20 percent. The purpose of this study is to investigate the inequality development across the districts in Kalimantan and examine whether Kuznets hypothesis is prevail in Kalimantan. Williamson Index dan Entropy Theil Index are employed in order to analysis the inequality of 55 districts in Kalimantan during 2000-2012. The result of study shows that: (1) Kuznets hypothesis is prevail in Kalimantan; (2) regional inequality in Kalimantan shows an increasing trend for the period of observation. East Kalimantan province gives the largest contribution towards the inequality in Kalimantan.