Middle Class Forms the Backbone of Indonesia's Economy

JAKARTA, KOMPAS.com - The Secretary of the Coordinating Ministry for the Economy, Susiwijono Moegiarso, has explained that the middle class constitutes the backbone of Indonesia’s economy. The government is continuously striving to create various measures to ensure job availability for them. This is because the middle class is currently facing various direct pressures, despite their significant contribution to the national economy. Technological disruptions such as AI, along with the shift of jobs from the formal to the informal sector, particularly in services, are exerting pressure on the middle class. Data from the National Socio-Economic Survey (Susenas) indicates that the proportion of middle-class jobs in the formal sector has been shrinking since 2019. Additionally, a survey by the Indonesian Employers Association (Apindo) reveals that 67 percent of companies in Indonesia have no plans to recruit new employees in the near future. “Programmes are not only for the poor but also for the middle class, because they are the backbone of the economy,” Susiwijono clarified. Yet, every year, there are 3.5 million new job seekers in Indonesia. Each one percent of economic growth in Indonesia can absorb between 200,000 and 400,000 workers if the investments are labour-intensive. Bob explained that currently, 67 percent of companies in Indonesia are reluctant to recruit new employees over the next five years. Such issues must be addressed seriously because they impact the people’s economy.