INSUBCONTINENT EXCLUSIVE:
representing 21.45% of its citizens
By 2024, this number had fallen to 47.85 million, or just 17.13% of the population.The Economic and Social Research Institute at the
University of Indonesia reports an even more dramatic drop
(Photo Internet reproduction)As this segment shrinks, concerns about reduced consumer spending and slower economic growth are mounting
The World Bank emphasizes that a robust middle class is crucial for boosting overall economic welfare.Several factors have contributed to
The COVID-19 pandemic dealt a significant blow to many middle-class households
Global economic slowdowns have compounded the problem.Job losses in formal sectors have pushed many into lower income brackets
Stagnant wage growth, coupled with rising living costs has squeezed household budgets
Government policies have also played a role.Challenges and Future ProspectsThe Job Creation Law, enacted to stimulate employment, has fallen
Instead of creating new opportunities, many workers face layoffs and declining purchasing power.The social implications of this trend are
measures to support the middle class, including tax incentives for home purchases and electric vehicle rebates
However, critics argue these efforts are insufficient given the scale of the problem.The challenge now is to reverse this trend
Economists suggest focusing on broad-based economic growth and improving institutional quality
Policies to reduce wealth concentration and create high-value jobs in the formal sector are also crucial.As Indonesia strives to achieve
developed nation status by 2045, revitalizing its middle class will be essential
represents the hopes and dreams of millions of Indonesians striving for a better life
Its decline threatens not only economic progress but also social stability and national aspirations.The coming years will be critical
