Inequality in Indonesia has reached historical levels, according to a report revealed by the World Bank in Jakarta on Tuesday (Dec 8).
Its Gini coefficient, a measure of inequality, has risen from 30 points in 2000 to 41 points in 2014, the highest recorded level for Indonesia.
This inequality has taken place even as Indonesia experienced sustained high growth and had significant reduced the national poverty rate.
The four main causes were identified as inequality of opportunity, unequal jobs, high wealth concentration and low resiliency among the poor.
"Indonesia is at risk of leaving its poor and vulnerable behind," said Radrigo Chaves, the World Bank's Indonesia Country Director.
"Poverty reduction has begun to stagnate, with a near zero decline in 2014. Income inequality is rapidly rising and up to one third of it is explained by inequality of opportunities."
The World Bank recommended four key actions: improving local service delivery for health, education and family planning opportunities; promoting better jobs and skills training; ensuring protection from economic shocks; and using taxes and government spending to reduce inequality.
Both urban and rural poverty levels have improved in recent years, however, critics said most of those rising out of poverty remained poor, a statistic clouded by Indonesia's easy conditions for poverty alleviation, which resulted in an overly optimistic picture.
The World Bank has previously identified Indonesia as a "vibrant democracy" with an impressive growth trajectory.
But in October, it noted that one of Indonesia's main challenges was that "approximately 40 percent of all people remain clustered around the national poverty line set at 330,776 rupiah per person per month (US$22.6)".