Tak Miskin, Tak Kaya: Nasib Kelas Menengah Terhimpit Beban Ekonomi | Narasi Explains

Summary

The video discusses the often overlooked role of the middle class in Indonesia's economy, highlighting their significant contribution to national consumption despite receiving limited government support during crises. It contrasts different definitions of the middle class by the BPS and World Bank and examines how recent government stimuli fail to address their needs, especially in the face of economic challenges like inflation and declining disposable income. With a shrinking middle class, the video argues for targeted policies to prevent their descent into poverty, stressing their importance in sustaining Indonesia's economic future.

Takeaways

• 😀 Middle class often goes unnoticed during crises, even though they play a vital role in the economy.
• 😀 The definition of 'middle class' varies between the Central Statistics Agency (BPS) and the World Bank, with different criteria for monthly expenses.
• 😀 BPS defines the middle class in 2024 as those spending between Rp2 million and Rp9.9 million per person monthly, with the national poverty line at Rp582,932.
• 😀 The World Bank breaks society into five groups based on monthly per capita expenditure, ranging from poor to upper class.
• 😀 Approximately 66% of Indonesia's population is middle class or aspiring to be, contributing more than 81% of national household expenditure.
• 😀 The middle class is often left out of government aid, as they are not considered poor enough for assistance, but not rich enough to withstand economic hardships.
• 😀 Government stimulus programs, like rice aid, typically target the poor or lower-middle class, with the middle class receiving limited or no support.
• 😀 The government’s stimulus efforts in 2025, such as wage subsidies and social assistance, have not effectively reached the middle class, who face growing income and savings issues.
• 😀 Between 2019 and 2024, Indonesia's middle class shrank by 9.48 million people, from 21.45% to 17.13% of the total population.
• 😀 The share of income held by the middle class has decreased over time, with the upper class seeing a rise in income share, highlighting a shift in wealth distribution.
• 😀 The middle class's disposable income is decreasing, with many only able to spend 17% of their income on consumption due to deductions like taxes and health benefits.

Q & A

What is the role of the middle class in Indonesia's economy according to the transcript?

The middle class plays a vital role in the Indonesian economy as they contribute more than 81% of national household expenditure. They drive the majority of national consumption in areas such as basic food purchases, transportation, entertainment, and children's education.

How does the government typically respond to a crisis in terms of social assistance?

In a crisis, the government usually focuses on poor and vulnerable groups, rolling out social assistance, subsidies, and incentives. However, the middle class often goes unnoticed and may not receive targeted support, despite facing challenges from economic slowdowns.

What criteria does the Central Statistics Agency (BPS) use to define the middle class in 2024?

According to BPS, the middle class in 2024 is defined as individuals with monthly expenses between Rp2 million and Rp9.9 million per person, with the national poverty line being set at Rp582,932.

What are the five groups defined by the World Bank in relation to monthly per capita expenditure?

The World Bank categorizes Indonesian society into five groups: 1) Poor (expenses around Rp354,000), 2) Vulnerable (Rp354,000 to Rp532,000), 3) Aspiring Middle Class (Rp532,000 to Rp1.2 million), 4) Middle Class (Rp1.2 million to Rp6 million), and 5) Upper Class (expenses above Rp6 million).

What has been the impact of government assistance on the middle class during economic crises?

Government assistance during economic crises often overlooks the middle class, as they are not considered poor enough for aid but also not rich enough to withstand the crisis. This leaves them in a vulnerable position, facing financial difficulties without sufficient support.

What types of government stimulus were provided in June 2025, and who benefited from them?

In June 2025, the government provided stimulus in the form of discounts on transportation tickets, toll fees, social assistance, food aid for beneficiary families, wage subsidies for workers with salaries below Rp3.5 million, and discounts on work accident insurance. The middle class benefited from some of these, but the overall effectiveness in addressing their needs was limited.

How does the current wage subsidy program affect the middle class?

The wage subsidy program targets workers with salaries below Rp3.5 million, which does not benefit workers in high-wage areas such as Jakarta or Cikarang. The subsidy is more likely to benefit workers in regions where the minimum wage is lower, thus providing some support to the lower middle class.

What trend has been observed regarding the size and income share of Indonesia's middle class?

Between 2019 and 2024, the number of middle-class citizens in Indonesia decreased by 9.48 million, with their share of the population dropping from 21.45% to 17.13%. Additionally, the middle class's share of income has declined from around 70% in the early 2000s to just 66% in 2023.

What challenges are contributing to the shrinking of Indonesia's middle class?

The shrinking of the middle class can be attributed to factors such as reduced disposable income, increased inflation, and the difficulty of meeting basic needs despite income growth. The middle class also faces a decrease in savings, which impacts their ability to spend on non-essential goods and services.

What types of assistance could better support the middle class in Indonesia?

To support the middle class, assistance could include direct financial aid, cheaper credit card loans to encourage consumption, and policies that address income inequality. This would help the middle class maintain purchasing power and continue to drive economic growth.