INEQUALITY BETWEEN THE REGION IN THE PROVINCE OF CENTRAL JAVA 2012 – 2016

The development becomes an activity process that must be conducted by all nation as the effort to remove the backwardnessand to repair the prosperity in all aspects in human life. Different with the paradigm of traditional economy development, modern economic development concerns in economic growth, unemployment problem, poverty, inequality and structural imbalance. In decade 1970s, redefinition of economic development was reachedby the effort with removing the poverty, development and inequality. In the developing country, especially in Indonesia, the emergence of economic inequality between the regions it is the global phenomena that must be faced. The main discussion in the implementation of the economic development policy in the developing country in the past is the economic inequality problem, because there is the tendency that the development policy that has been designed to increase the economic growth in contrast in make worse the condition of economic inequality between the regions in a nation. The problem of economic inequality theoretically can be explained by using neo classic hypothesis. In the beginning process of development in a nation, the economic inequality between the nation tends to widen (divergen) because it is caused by mobility of production factor (capital and labor) that are not running well, so it is concentrated in the developed region. With the process of sustainable development, and with the better infrastructure so the mobility of production factor will be better, thus the economic inequality between the region will be reduced (convergen). This writing tries to analyze and answer the problem of economic inequality between the region in Central Java 2012 – 2016 with some of problems about: income per capita and economic inequality in Regency/City in central java, based on data in 35 regencies/cities in Central Java. Meanwhile presumed that in the area of developing region generallythe economic inequality between the region tend to be higher, and in the developed region the economic inequality tend to be lower. Keywords: Economic Development, Economic Growth, economic Inequality, Divergen, Converge