Topic > Causes of Commodity Boom in Indonesia - 1299

This causes some regions to have better resources and raw materials than others, which attracts investors to invest in richer regions. Furthermore, this leads to richer regions having better economic growth which pushes them to earn more revenue. The commodity boom also contributes to increasing income inequality because it benefits the rich more than the poor. Furthermore, the poor are the ones who feel the impact of this phenomenon, as the price of some products in Indonesia increases, due to the excessive export of the commodity. Then, the poor labor welfare which makes low-income people suffer more because the government is not severe enough, so there are workers who earn less than the minimum wage and make them unable to improve their lives and reduce their income . the gap. Moving on to the government's reaction, they increase the minimum wage to allow low-income people to improve their lives. Furthermore, the government also allocates a lot of money to help the poor by providing them with healthcare and smart cards in order to create a healthier and smarter new generation. Furthermore, a better new generation means that a better quality of human resources will be created and provided, responsible for the Indonesian economy in