Kelas Menengah, Sudah Kena PHK Tertimpa Pajak Pula

Summary

Indonesia has experienced rapid economic growth, but underlying issues of inequality and social injustice remain. The middle class is increasingly vulnerable, with many falling into poverty due to economic structural issues, such as wage stagnation, taxation, and social policy changes. The government's planned increases in taxes, subsidies, and mandatory insurance are putting further pressure on the middle class, reducing purchasing power and deepening their financial strain. Without more attention to these challenges, Indonesia risks endangering its goal of becoming a developed nation by 2045, as the middle class struggles to keep afloat amidst rising costs and stagnant wages.

Takeaways

• 😀 Indonesia has experienced rapid economic growth in recent decades, but this has been accompanied by deepening economic inequality.
• 😀 The focus on macroeconomic indicators like GDP and infrastructure often obscures the true meaning of development, which should ensure that the benefits of economic growth reach all layers of society.
• 😀 The middle class in Indonesia has been struggling with job losses, higher taxes, and reduced purchasing power, exacerbating social inequality.
• 😀 The number of Indonesians in the 'aspiring middle class' category has grown significantly, while the proportion of the true middle class has sharply declined.
• 😀 As of 2024, almost half of Indonesia's population is classified as aspiring middle class, while a significant portion is categorized as vulnerable or at risk of poverty.
• 😀 Recent tax policy changes, including the increase of VAT to 12%, will further burden the middle class and impact their cost of living and purchasing power.
• 😀 The government is also considering adjusting the subsidy system for KRL (Commuter Line) fares, which will place an additional financial strain on the middle class, particularly in urban areas.
• 😀 Proposals for mandatory pension deductions and a compulsory third-party vehicle insurance scheme will further reduce disposable income for middle-class workers.
• 😀 The controversial Tapera housing savings program burdens non-low-income workers (middle class) without necessarily benefiting them, while intended to support low-income individuals in obtaining housing.
• 😀 The middle class in Indonesia, often seen as the engine of economic growth, faces increasing financial pressure, and without adequate government support, their position may deteriorate further, posing a risk to the nation's long-term economic stability.

Q & A

What is the primary issue discussed in the transcript regarding Indonesia's economic development?

The transcript highlights the growing economic inequality in Indonesia despite rapid economic growth. It emphasizes that macroeconomic indicators like GDP and infrastructure development often fail to capture the deeper issues of poverty, inequality, and social injustice.

How does the class structure in Indonesia reflect the rising economic inequality?

The class structure in Indonesia is increasingly dominated by the 'aspiring middle class,' with those earning between 870,000 to 2 million IDR per capita per month. This group represents nearly half of the population. In contrast, the percentage of the true middle class has decreased significantly, while the number of people in the 'vulnerable poor' category has risen.

What factors are contributing to the decline of the middle class in Indonesia?

The decline of the middle class is attributed to several factors, including stagnating wages, rising living costs, job insecurity, inflation, and policies such as changes in taxation and subsidies. Additionally, the emergence of structural poverty has led to more people falling into the vulnerable poor category.

How is the Indonesian tax system impacting the middle class?

The middle class in Indonesia is burdened by increasing taxes, such as the proposed increase in Value Added Tax (VAT) from 11% to 12%. This would raise living costs and reduce purchasing power, especially for small and medium-sized businesses (UMKM) and the middle class.

What are the implications of the proposed VAT increase on the economy?

The VAT increase is intended to generate additional government revenue for public services like infrastructure, education, and healthcare. However, it is expected to lead to higher living costs, reduced consumer purchasing power, and increased inflation, particularly affecting the middle class and small businesses.

What changes are being proposed regarding public transport subsidies, and how will they affect the middle class?

The Indonesian government plans to adjust subsidies for the KRL (commuter rail) by using the National Identification Number (NIK) as the basis for determining subsidy eligibility. This shift is expected to lead to higher fares for the middle class, further squeezing their purchasing power.

What other financial burdens are being placed on the middle class in Indonesia?

The middle class is facing additional financial burdens, such as proposed mandatory pension contributions (Tapera), the introduction of mandatory third-party liability insurance for vehicles starting in 2025, and potential salary cuts for mandatory pension programs. These policies are likely to further strain the middle class.

How does the Tapera program impact the middle class in Indonesia?

Tapera requires workers to contribute 2.5% of their salary, with employers contributing 0.5%, even though the primary beneficiaries are low-income individuals who need affordable housing. This additional deduction from the middle class may not provide any immediate benefits to them but adds to their financial burdens.

Why is the middle class often referred to as the 'mendang-mending' class, and what does this signify?

The 'mendang-mending' class refers to people who are not poor but also struggle to accumulate wealth. They live in a state of financial instability, constantly balancing between not being poor enough to qualify for aid, but not rich enough to feel secure. This class faces significant pressure from rising costs and stagnating wages.

What are the potential consequences for Indonesia's future if the middle class continues to decline?

If the middle class continues to shrink, it could threaten Indonesia's future economic growth, particularly the government's goal of achieving 'Indonesia Emas' (Golden Indonesia) by 2045. The lack of attention to the middle class could lead to greater social instability and economic stagnation.