Celios Observer Says The Lowering Of Middle Class People Due To COVID-19 Is The Cause Of The Emergence Of 'Rojali'

JAKARTA - Executive Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira assessed that the phenomenon of groups rarely buying or 'Rojali' has occurred since the COVID-19 pandemic.

The reason, said Bhima, was that after the COVID-19 pandemic, the number of middle class people had decreased.

"The phenomenon of 'Rojali', yes, people just shop for food, hang out without spending money to buy goods in shopping centers such as malls. This is actually a phenomenon that has been around for a long time, yes, one of them is that after COVID-19 many middle class people have decreased in number," said Bhima to VOI, Thursday, July 31.

"The more squeezed by the cost of living, especially in food inflation, housing is also related to high interest rates and they are stuck in debt installments," he continued.

In addition, Bhima views, currently the number of middle class revenues tends to decline in a positionable income.

This means, he said, the middle class prefers to spend their money on recreation or just doing healing.

"Meanwhile, this mall provides a lot of necessities that are secondary and tertiary, such as luxury items, luxury bags. They focus first, here, on basic needs. So, going to the mall is just for washing your eyes or refreshing," he explained.

Bhima added that currently there is also a change in the trend of shopping at online stores, aka online. According to him, the middle class prefers online shopping to be driven by providing discounts to free shipping costs (postage).

"There are also some other reasons because they buy some secondary or tertiary goods at online stores with discounted shipping costs and promos that are not offered by malls, for example, that has changed consumer behavior," said Bhima.

Furthermore, Bhima suggested that shopping center managers could shift from initially providing clothes outlets to secondary needs to become food centers for food and food for family recreation.

"That is now in demand. We see some of the old malls that change the concept are able to survive, yes, so consumer spending on recreation continues to support shopping center income," he concluded.