Middle Class Starts Turning To Survival Mode, What Should Prabowo Do?

Prabowo Subianto and Gibran Rakabuming Raka. (Photo: Doc. Antara)

JAKARTA - The middle class has been considered the backbone of the Indonesian economy. However, in the latest data by LPS and Bank Mandiri Research, it shows that people's savings have decreased, accompanied by declining people's purchasing power.

Jakarta Veterans UPN Public Policy Economist and Expert Achmad Nur Hidayat said this condition shows that the Indonesian middle class seems to have started switching to survival mode.

However, continued Achmad, the decline in savings in the middle class is not as large as among the lower classes. However, in the long term, this pattern can be an early signal that the middle class is struggling to maintain their lifestyle.

They no longer focus on consumption of secondary or tertiary goods such as recreation or entertainment, but rather shift the budget to essential goods. This is a clear indication that they are in survival mode," he said in an official statement, Friday, September 27.

Achmad said one of the most worrying impacts of middle-class survival modes is the threat that they can go down to vulnerable poor groups.

"If this trend continues without significant policy intervention, we will see a massive economic setback," he said.

Achmad said to avoid potential further crises, several steps must be taken by the Prabowo Subianto-Gibran Rakabuming Raka government.

First, continued Achmad, the social protection policy was right on target. He explained that social protection is not only important for the lower class, but also for the middle class who are threatened with lower classes.

Assistance in the form of educational, health, and more affordable subsidies can provide space for them to maintain savings and avoid worse conditions, their class.

Second, he continued, job support. According to him, the government needs to encourage policies that create more jobs in the growing sectors, such as technology and the green economy.

"This will reduce dependence on traditional work that may be experiencing a decline," he said.

Finally, continued Achmad, programs that support income innovation and diversification. In this digital era, the middle class must be encouraged to take advantage of new opportunities.

"Such as digital entrepreneurship and freelance work, which can increase income and provide financial stability amid uncertainty," he said.

Achmad emphasized that the survival mode that is now felt by the middle class is an alarm for all parties. Although not as big as the impact experienced by the lower class, if not handled properly, the middle class can turn into a vulnerable group.

In the end, it slows down Indonesia's economic recovery. Appropriate and measurable policies need to be taken to ensure that the middle class can return to optimally contribute to the economy, not just survive," he said.