Tifatul Highlights Purchasing Power Anomaly Amid National Economic Growth
National economic growth, currently hovering around 5%, needs to translate into more tangible impacts for the community, particularly in regional areas. Tifatul Sembiring, Chairman of Group IV of the MPR RI Research Body, emphasised that economic growth achievements should not merely be reflected in macro figures but must be capable of improving public welfare and purchasing power.
“The real purchasing power of the community is weakening, which directly impacts the turnover of MSMEs. Furthermore, the surge in inflation for basic necessities and the influx of cheap imported products are increasingly pressuring domestic industries,” he stated in a written statement on Wednesday (2/9/2026).
Tifatul shared these views during a Focus Group Discussion (FGD) on State Financial Systems, National Economy, and Social Welfare, titled “Dynamics of Public Purchasing Power and Policy Alternatives,” organised by the MPR RI Research Body in Depok, West Java.
During the forum, Tifatul noted that national economic achievements show a positive trend. Based on the data presented, economic growth in the first quarter of 2026 reached 5.61%, while growth for the first semester stood at 5.45%.
However, he argued that these achievements require deeper scrutiny due to several ongoing challenges on the ground, specifically regarding public purchasing power conditions.
He stated that economic growth must be directly felt by the people and not remain merely as statistical data. He highlighted an economic anomaly where growth continues, yet public purchasing power faces significant pressure.
Additionally, he highlighted other challenges, such as the pressure on the Rupiah exchange rate, which is hovering around Rp17,700 per US dollar, waves of layoffs, and the condition of vulnerable social groups that require greater attention.
Referring to BPS data presented during the forum, approximately 22.93 million residents have an income range of around Rp700,000 per month, while the majority of the population still earns below Rp1.5 million per month.
“There are even expert studies suggesting that around 10 million middle-class residents are experiencing a downward class shift because price increases are not being matched by income growth,” he said.
According to him, this condition underscores the importance of building economic security and certainty for the public. This concept encompasses three main aspects: availability, reliability, and affordability.
“Economic resilience is not merely short-term aid for two or three days, but a guarantee of sustainable long-term protection for vulnerable groups, workers, and the poor,” he asserted.
In the FGD, Prasetyo Hadi, an economics academic from UPN Veteran Jakarta, stated that current economic pressures are linked to policy misalignment and structural inequality.
He suggested several alternative policies, ranging from delaying VAT increases on essential commodities and adjusting Non-Taxable Income (PTKP) thresholds, to direct cash energy subsidies and tax incentives for labour-intensive sectors.
“From the monetary side, there is a need for macroprudential policy easing, reduction of the Statutory Reserve Requirement (GWM), stabilisation of the Rupiah exchange rate, and precise management of benchmark interest rates so that the 5.6% growth is truly felt evenly across the regions,” he explained.
Meanwhile, Muhamad Yunanto, an economics academic from Gunadarma University, noted that the rising prices of basic necessities also affects the consumption capacity of low-income communities.
He emphasised the importance of direct cash assistance and targeted subsidies as emergency buffers, while ensuring that budgetary policies have measurable indicators for protecting purchasing power.
“The State Budget (APBN) must have substantive legitimacy through real benefits for public welfare. The diagnosis for protecting purchasing power must be comprehensive: combining social buffers, accessibility to public services, supply stability, and the creation of productive income,” he remarked.
Abdul Manap Pulungan, a Senior Researcher at the Institute for Development of Economics and Finance (INDEF), also highlighted the phenomenon of declining savings among lower-middle-class communities.
According to him, this condition indicates pressure on the community’s ability to meet daily needs.
“This illustrates that the lower class is forced to ‘eat their savings’ to meet basic needs amidst economic volatility,” he said.