Urban–Rural Inequality and Persistent Poverty in Indonesia: A District-Level Study

Abstract

This study explores the entrenched urban–rural disparities and the persistence of poverty traps in Indonesia through district-level analysis. Despite national economic progress, rural districts continue to face structural barriers—such as limited infrastructure, institutional weaknesses, and geographic isolation—that reinforce poverty. Drawing on spatial poverty trap theory, dependency theory, and institutional analysis, this research synthesizes evidence from academic literature and policy documents published by verified institutions. The findings highlight the multidimensional nature of rural poverty and identify mechanisms that sustain deprivation, including poor asset access, weak governance, and environmental vulnerability. Decentralized, place-sensitive policies—such as local infrastructure investment, rural enterprise development, and adaptive social protection—are proposed to disrupt these cycles. By revealing sub-provincial disparities and emphasizing localized solutions, this study contributes to the discourse on inclusive development in Indonesia. The district-level approach provides practical insights for policymakers seeking to address inequality in the context of decentralized governance.