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title: 7 Problems in Indonesia's Economic Diversity

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# 7 Problems in Indonesia's Economic Diversity


**The problems of Indonesia's Economic Diversity -** The diversity of economic conditions that exist in society is related to the diversity of levels of work, profession, position, position, to educational background that can affect income. In short, each individual has their own job and income, so not all are the same in terms of finances. Well, from this diversity, of course, it will cause various problems, including social inequality.
According to Indrastuti (2009), economic diversity is a variety of matters in an economic activity or livelihood. Meanwhile, according to Haris Iskandar (2017), economic activities are all activities carried out by individuals to meet their daily needs.
The following are some of the problems that arise from the existence of economic diversity in Indonesian society.
## 1. Limited Job Opportunities for the Community
This limited job opportunity is increasingly felt, especially in the current state of the Covid-19 pandemic. The number of companies or jobs that went bankrupt indirectly caused workers to inevitably have to look for new jobs.
However, finding a new job is not easy because each other's economic situation is also difficult. Plus, along with the development of the times, the work also becomes diverse and must have certain skills. Not everyone has this particular skill.
This indirectly affects the diversity of the economy, so that conflicts between communities may arise.

## 2. Social Gap
Now, this is a problem that will clearly arise in economic diversity. The existence of social strata in terms of economy, namely the upper economic class, the upper middle class, to the lower economic class.
You can see real examples around you, there is someone who is in the upper economic class so it will be easy to meet needs, both primary and tertiary. There is also someone who is in the lower economic class, to meet their primary needs in the form of filling their stomachs they think twice, let alone to meet secondary to tertiary needs.
The existence of these striking gaps or differences is an example of the problems encountered in the economic diversity of Indonesian society.

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## 3. Unfair Competition Occurs
The next problem is that there will be competition or competition that occurs among members of the community. Starting from the industry, MSMEs, to the process of applying for jobs.
In the case of MSMEs, for example, there are two people who both set up MSMEs in the form of aci meatballs. However, these two people have different economic circumstances, so one person can buy raw materials of average quality but manage to pay an agent to print the trademark. While one other person can only buy raw materials of good quality, but sells them through warungs.
Through the difference in the capital of these raw materials, of course it will give different results. Consumers tend to choose food products that have a trademark, even though the quality is not necessarily good.

## 4. Social Jealousy
From the difference or diversity of economic conditions, it not only causes social inequality, but also social jealousy. Jealousy is usually "proposed" to people of the upper economic class and have large amounts of wealth.
In fact, this social jealousy can have an effect on criminal acts, such as theft, robbery, to murder to target property.

## 5. Poverty
Poverty is a condition in which a society is unable to meet the needs of its life, both primary and secondary needs. In Indonesia, poverty is one of the economic problems that the government continues to face.
Previously, various efforts had been made to alleviate poverty, starting from the Village Assistance Program to the existence of a Certificate of Disability (SKTM).
However, despite the efforts that have been made, poverty in Indonesia has not simply decreased. The problem of poverty actually affects various things, ranging from education, access to health, to equitable distribution of natural resources (SDA).

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## 6. The Rise of Unemployment
The unemployment problem is almost the same as the previous point, namely the limited employment opportunities. It can be said that with the limited number of available jobs, it will have an effect on increasing unemployment.
The problem of unemployment is actually not only experienced by Indonesia, but also in various countries. Unemployment is caused by the number of labor force is not balanced with the number of existing jobs. As a result, the labor force does not get the opportunity to work, and causes unemployment.

## 7. Inflation
Inflation is a process of rising prices that occur continuously. The price increase is related to the market mechanism which is influenced by various factors, one of which is the increasing level of public consumption. There are several causes of inflation, namely demand-pull inflation and cost-push inflation.
However, it turns out, this inflation problem affects each other, you know, with the unemployment problem!
Based on the Philips curve, it is illustrated that there is a negative relationship between the inflation rate and unemployment. If the inflation rate is high, the unemployment rate will be low.
Actually, the relationship between inflation and unemployment is largely determined by the supply and demand for goods/services in the market. For example, if the demand for goods/services increases, this will also affect the level of demand for labor.
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