Why do differences in provincial incomes persist in Indonesia?

The authors point out that 20 years of sustained growth have pulled Indonesia out of poverty and made people over the entire archipelago richer. Between 1975 and 1995, GDP per capita rose at about 5% per year, provincial GDPs increased, and inequality among provincial GDPs was reduced. Despite these gains, disparities in provincial GDP per capita persist. They seek to explain in this article why. The authors believe that investments in human capital (education and health) seem to be the most effective way of increasing provincial incomes and reducing the disparities in provincial GDP per capita. (DÜI-Sen)