<![CDATA[Income inequality remains a persistent structural issue that weakens the effectiveness of poverty reduction in Indonesia, despite sustained economic growth. This study aims to examine the relationship between income inequality and poverty, identify key mediating factors, and analyze them within the framework of inclusive economic development. A qualitative literature review approach was applied using systematically selected secondary data from academic journals, books, and official reports published between 2010 and 2025. The selection of literature was based on relevance, credibility, and recency. The analysis employed content analysis to synthesize findings and identify consistent patterns across studies. The results show that income inequality significantly contributes to poverty persistence by limiting access to education, formal employment, productive assets, and basic services. Structural factors such as regional disparities, labor market dualism, and unequal resource distribution further reinforce this relationship. In addition, inequality reduces the effectiveness of economic growth in lowering poverty and increases the risk of intergenerational poverty. The study emphasizes that inclusive economic development through equitable access, improved human capital, and targeted social policies is essential to reduce inequality and poverty in a sustainable.]]>
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