Prabowo Puzzled by 5% Economy Yet Declining Middle Class, Why?

Prabowo Puzzled by 5% Economy Yet Declining Middle Class, Why?

Jakarta, CNBC Indonesia - President Prabowo Subianto has highlighted the phenomenon of a shrinking middle class and rising poverty over recent years, noting that it occurs despite Indonesia’s economy growing at an average rate of 5% over the past seven years.

‘Fellow citizens, seven years times five percent, 35% of our economy has grown, but our poor people have increased, from 46.1% to 49.5%, the rise by 3% is larger. The middle class is shrinking, fellow citizens,’ Prabowo said at a plenary session of the DPR in the Parliament complex in Senayan, Jakarta, on Wednesday (20 May 2026).

Seeing the data, Prabowo admitted he was shocked and felt as if a blow to his chest.

‘Perhaps this is painful for us; I received this data a few weeks after becoming President, as if I were struck in the heart,’ he declared.

The poverty and middle-class data led Prabowo to question members of the council and experts. He said he was puzzled by the figures.

‘I ask before this esteemed chamber, I ask all political parties, all mass organisations, I ask all experts and all eminent professors: How can growth reach 35% while the middle class declines? Poverty is rising,’ he said.

From the study by the council of experts, Prabowo is convinced that the economic system currently in operation is not on the right track.

‘Fellow citizens, the answer must be scientific, the answer must be mathematical, and in my view the answer is that most likely, not just likely, I am convinced that the economic system we are running is on a trajectory that is not right,’ he said.

He also compared with other countries. According to him, the difference lies in the economic system, and he assessed that if this economic system is continued, Indonesia will become a country hard to prosper.

‘Perhaps the difference between us and countries such as Mexico, India, the Philippines, and others is a systemic difference. We must look at the facts, the facts that if we continue like this, if we continue with the system as it is for a number of years, I am convinced that we will not become a prosperous nation,’ Prabowo said.