11 Million Wealthy Individuals Downgraded, Indonesia's Economy at Risk - Business Insight

JAKARTA. Indonesia’s ambition to escape the middle-income trap is threatened by fragile purchasing power. The economy’s reliance on household consumption, which stands at 54%, is now overshadowed by the declining middle class. Without improvements in job quality, 86 million residents will be dragged down by inflation and increasingly suffocating rises in living costs. Mandiri Institute notes that 86 million residents, or one in three Indonesians, are in the transitional middle class group. This category includes those nearly wealthy or upper aspiring middle class, as well as the lower middle class.