JAKARTA - The increasing global uncertainty due to geopolitical tensions and supply chain disruptions is still a serious challenge for the world economy.
However, Indonesia is considered capable of maintaining its economic resilience, which is supported by strong domestic consumption and the important role of the middle class as a driving force for the national economy.
The Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, emphasized that the contribution of the middle class is very significant to the economy.
"If you look at the share of our economy, how important the role of the middle class in Indonesia is. Not only the share of spending, household consumption that was delivered, the composition of our Gross Domestic Product (GDP) is 54-55 percent from household consumption," he said in his statement. quoted Thursday, April 16.
Susiwijono explained that global dynamics, including geopolitical conflicts that have an impact on the energy and logistics sectors, have the potential to suppress global economic growth.
However, he added that Indonesia's economic structure is considered more resilient because it is not too dependent on international trade compared to many other countries.
A number of national macroeconomic indicators also show stable performance. Economic growth is in the range of 5 percent, inflation is under control, and is supported by a positive trade balance, adequate foreign exchange reserves, and consumer confidence levels that remain maintained.
He added that the government was also optimistic that the economic growth target of 5.4 percent in 2026 could be achieved.
On the other hand, the middle class remains a focus of attention, where this group, the middle class and prospective middle class, covers about 66.35 percent of the total population or about 185.35 million people, and is the main support for national consumption.
However, the government also noted a shift in some middle classes to the middle class.
Susiwijono said this phenomenon showed pressure on purchasing power, especially in urban areas where the majority of these groups live, and this condition is an important concern in the preparation of future policies.
In addition, the characteristics of the middle class have also changed, such as the increasing dominance of the service sector in employment and the decreasing proportion of formal workers.
In terms of consumption, the spending of this group is now more directed towards non-food needs, such as housing, transportation, and lifestyle.
Susiwijono also touched on the Chilean Paradox phenomenon, which shows that high economic growth is not always followed by equitable welfare.
According to him, this is a reminder that economic policies should remain oriented towards improving the welfare of all levels of society.
Responding to the example of this phenomenon, Susiwijono expressed the Government's commitment to continue to strengthen various programs that target all levels of society, including the middle class.
He added that in addition to social assistance for vulnerable groups, various stimuli such as tax incentives, housing sector support through FLPP, as well as automotive incentives and energy subsidies are also directed to maintain the purchasing power and economic activity of this group.
"We welcome the results of the survey from Katadata. Later we will discuss together how the data that has been surveyed from our friends, we use as the main reference in making future programs. So that our middle class, which is the backbone of determining the Indonesian economy, we really encourage, we empower, and contribute positively to the national economy of Indonesia," concluded Susiwijono.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
