Cak Imin Warns the Middle Class Is at Risk of Sliding into Poverty as Living Costs Rise

JAKARTA — Coordinating Minister for Community Empowerment Muhaimin Iskandar, also known as Cak Imin, warned that the middle class are vulnerable to sliding down a rung and into poverty. He stressed that this is not due to lifestyle choices, but because middle-class spending continues to swell and does not keep pace with income.

‘The pressure of living costs, uncertainty in the labour market, and rising costs of education and health will continue to erode the resilience of our middle class,’ Cak Imin said at the Kemenko PM office in Central Jakarta on Wednesday, 4 March 2026.

Cak Imin said that the findings show economic shocks can easily push vulnerable groups into the poverty trap. In fact, economic growth has been heavily influenced by middle-class consumption, which for a long time has been the main engine of domestic demand and our economic stability.

‘Poverty policies are not sufficient if they focus only on helping the poor; we must continually act to prevent vulnerable groups and the middle class from slipping down,’ he said.

‘Poverty remains a fundamental challenge, characterised by a decline in the number of middle-class and a significant rise in vulnerable-poor groups,’ he added.

According to Cak Imin, if poverty indicators are ignored, policy and regional budgets will not impact welfare and will widen inequality.

The government has set an ambitious and measurable target, namely zero extreme poverty by 2026. To achieve that, Cak Imin called for collective work across all parties, between central and local governments, with targeted policies that have a direct impact on the people.

‘TIf we want the people to continue moving up a class and live with dignity, then community empowerment is the key,’ he said.