The Government Gives This Incentive For Middle Class, Prevents Savings Dependence

Sri Mulyani Indrawati, Minister of Finance (Instagram/@smindrawati).

JAKARTA - The middle class is considered to be a group that has a strategic role to play in boosting the economy. This was revealed by the Minister of Finance (Menkeu), Sri Mulyani Indrawati.

Therefore, Sri Mulyani said that the Government also pays more attention to middle groups through various programs.

"Middle class has a strategic role to play in boosting the economy. Therefore, the Government has provided several programs to improve the welfare of middle class groups," he said on his official Instagram account @smidrawati, quoted on Saturday, August 31, 2024.

As for the Government's program to improve the welfare of the first middle class through social protection programs, subsidies and compensation, tax incentives such as the Government-Borrowed Value Added Tax (VAT DTP) incentives for the purchase of houses.

In addition, programs to provide health luran assistance, People's Business Credit Programs (KUR) to safety nets such as Pre-Employment Cards as collateral for job loss.

Sri Mulyani hopes that these incentives can help improve middle class welfare.

"Hopefully these various programs will not only help improve the welfare of the middle class, but also improve the welfare of the Indonesian people as a whole," he said.

Previously, the Coordinating Minister for Economic Affairs (Menko Perekonomian), Airlangga Hartarto, said that the role of the middle class in Indonesia was the main driver of the Indonesian economy, which was around 17.1 percent and outside middle class approached 50 percent. This means that in the time before COVID-19 the figure was slightly higher.

"This is because there is an effect of COVID-19 which is often conveyed by the Minister of Finance as a screening effect, which is expected to be improved in the future," Airlangga said at a press conference, Tuesday, August 27, 2024.

According to Airlangga, the middle class group has characteristics closely related to consumption patterns, which are dominated by the food, housing, education, and entertainment or services sectors.

"Then the characteristics in the middle class are related to consumption patterns, the largest expenditure is usually in terms of the sector for food, followed by housing, health, education to entertainment or the service sector," he said.