{
    "success": true,
    "data": {
        "id": 1794660,
        "msgid": "middle-class-squeezed-government-urged-to-be-more-sensitive-to-purchasing-power-1781059866",
        "date": "2026-06-10 09:19:00",
        "title": "Middle Class Squeezed, Government Urged to Be More Sensitive to Purchasing Power",
        "author": "Indriyani Astuti",
        "source": "MEDIA_INDONESIA",
        "tags": "",
        "topic": "Economy",
        "summary": "The Indonesian middle class is facing mounting pressure from rising interest rates and living costs, threatening its role as the main pillar of domestic consumption. Economist Achmad Nur Hidayat has called on the government to formulate economic policies that are more sensitive to the burden borne by this group, who often miss out on social aid yet bear the brunt of tax, fuel, and credit rate hikes. The decline in the middle-class population signals a worsening of welfare that could undermine the foundation of the national economy.",
        "content": "<p>The middle class is considered to be increasingly squeezed by rising\ninterest rates and the escalating cost of living. This condition has the\npotential to weaken public purchasing power whilst simultaneously\neroding the role of the middle class as the main pillar of national\nconsumption. Economist and Public Policy Expert from UPN Veteran\nJakarta, Achmad Nur Hidayat, assesses that macro-stability-oriented\neconomic policies must still consider their impact on middle-class\nhouseholds, who have long been the primary drivers of the domestic\neconomy. According to Achmad, the increase in the benchmark interest\nrate and rising energy prices are exerting double pressure on this\ngroup. The impact is felt not only through higher credit costs but also\nthrough increased daily expenditure related to mobility and household\nneeds. Achmad noted that the middle class makes a significant\ncontribution to national consumption. Therefore, a weakening of this\ngroup\u2019s purchasing power could have a direct impact on overall economic\ngrowth. Achmad highlighted data showing the number of middle-class\nIndonesians has declined in recent years. In his view, this condition is\na signal that more people are vulnerable to a decline in their level of\nwelfare due to economic pressure. He explained that the rise in interest\nrates aimed at maintaining exchange rate stability does have a strong\neconomic basis. However, the transmission of that policy will ultimately\naffect bank lending rates, including home ownership loans, vehicle\nloans, and small business financing. Beyond the interest rate factor,\nAchmad also highlighted the impact of rising non-subsidised fuel prices\non household spending. According to him, the fuel price increase not\nonly affects transport costs but can also drive up the prices of various\ngoods and services through a chain effect on distribution and logistics\ncosts. He therefore urged the government to be more sensitive to the\nconditions of the middle class when formulating economic policies. This\nincludes strengthening social protection that targets not only the poor\nbut also vulnerable communities and the lower middle class affected by\nthe rising cost of living. Furthermore, the government is encouraged to\naccelerate the development of affordable public transport to reduce\npublic dependence on private vehicles, particularly in urban fringe\nareas.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/middle-class-squeezed-government-urged-to-be-more-sensitive-to-purchasing-power-1781059866",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}