Indonesia's economy suffers from 'long COVID' as middle class shrinks

Key growth driver has yet to recover from pandemic, statistics agency says

20240904 Jakarta daily life1

People walk past street food stalls in Jakarta. The proportion of Indonesians classified as middle class has fallen in the past few years as a result of the effects of the COVID-19 pandemic, according to the Central Statistics Agency. (Photo by Ken Kobyaashi)

ISMI DAMAYANTI, Nikkei staff writer

JAKARTA -- Indonesia's economy is suffering from "long COVID" in the form of a shrinking middle class, the national statistics agency has warned, as people struggle with widespread layoffs, rising interest rates and deindustrialization.

The proportion of middle class Indonesians dropped from 21.4% of the 267 million population in 2019 to 17.1% of the 289 million population in 2024, according to the Central Statistics Agency (BPS), while the proportion of people classified as "aspiring middle class" rose slightly from 48.2% to 49.2%. Those regarded as vulnerable jumped from 20.6% to 24.2% over the same period. In absolute terms the middle class shrank by 9.5 million people.

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