• Education
    • Higher Education
    • Scholarships & Grants
    • Online Learning
    • School Reforms
    • Research & Innovation
  • Lifestyle
    • Travel
    • Food & Drink
    • Fashion & Beauty
    • Home & Living
    • Relationships & Family
  • Technology & Startups
    • Software & Apps
    • Startup Success Stories
    • Startups & Innovations
    • Tech Regulations
    • Venture Capital
    • Artificial Intelligence
    • Cybersecurity
    • Emerging Technologies
    • Gadgets & Devices
    • Industry Analysis
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy
Today Headline
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
  • Home
  • World News
    • Us & Canada
    • Europe
    • Asia
    • Africa
    • Middle East
  • Politics
    • Elections
    • Political Parties
    • Government Policies
    • International Relations
    • Legislative News
  • Business & Finance
    • Market Trends
    • Stock Market
    • Entrepreneurship
    • Corporate News
    • Economic Policies
  • Science & Environment
    • Space Exploration
    • Climate Change
    • Wildlife & Conservation
    • Environmental Policies
    • Medical Research
  • Health
    • Public Health
    • Mental Health
    • Medical Breakthroughs
    • Fitness & Nutrition
    • Pandemic Updates
  • Sports
    • Football
    • Basketball
    • Tennis
    • Olympics
    • Motorsport
  • Entertainment
    • Movies
    • Music
    • TV & Streaming
    • Celebrity News
    • Awards & Festivals
  • Crime & Justice
    • Court Cases
    • Cybercrime
    • Policing
    • Criminal Investigations
    • Legal Reforms
No Result
View All Result
Today Headline
No Result
View All Result
Home World News Africa

Indonesia’s shrinking middle class casts shadow on economic rise

November 15, 2024
in Africa
Reading Time: 4 mins read
A A
0
Indonesia’s shrinking middle class casts shadow on economic rise
1
SHARES
2
VIEWS
Share on FacebookShare on Twitter


Medan, Indonesia – Halimah Nasution used to feel as if she had it all.

For years, she and her husband Agus Saputra made a good living renting out supplies for weddings, graduations and birthdays.

Even after splitting their earnings among several of their siblings, the couple in Indonesia’s North Sumatra province took in about 30 million rupiahs ($1,917) each month.

Spending about one-quarter of their takings each month, the couple belonged to the upper reaches of Indonesia’s middle class, officially defined as those with monthly outgoings of between two million rupiahs ($127) and 9.9 million rupiahs ($638).

Then the COVID-19 pandemic hit.

Communal events and social gatherings were banned across Indonesia.

For a couple who had made celebrations their business, the lockdowns dealt a devastating blow.

“We lost everything,” Nasution told Al Jazeera.

Several years later, the couple are yet to claw their way back.

They are among the millions of Indonesians who have slipped out of the Southeast Asian country’s shrinking middle class.

The number of Indonesians classified as middle class fell from 57.3 million in 2019 to 47.8 million this year, according to data from the Central Bureau of Statistics.

Those classified as belonging to the “aspiring middle class” increased from 128.85 million to 137.5 million over the period, according to the statistics agency.

Together, the two segments make up about two-thirds of Indonesia’s 277 million people.

People gather at a park with a view of buildings in the Sudirman Central Business District in Jakarta on July 31, 2024 [Ajeng Dinar Ulfiana/Reuters]

Economists have attributed the decline to a range of causes, including the aftershocks of COVID-19 and gaps in the country’s social safety net.

Ega Kurnia Yazid, a policy specialist with the government-run National Team for the Acceleration of Poverty Reduction, said “several interconnected factors” had contributed to the trend.

“Firstly, [Indonesia’s middle class] primarily contributes to tax revenue but receives limited social assistance, most of which is disbursed through formal employment mechanisms such as job security and national health insurance,” Yazid told Al Jazeera.

“Meanwhile, other forms of assistance, such as cash transfers and energy subsidies, often suffer from inclusion errors and are not effectively channelled to this group.”

Nasution and her husband experienced this lack of support firsthand when their business collapsed.

“We did not get any help from the central government when we were no longer able to work during the pandemic and we only received a small amount from our local village office to help us buy groceries, but it was only 300,000 rupiahs a month [$19],” she said.

Indonesia’s economy has been growing steadily since the end of the pandemic, with annual gross domestic product (GDP) growth of about 5 percent.

But like many of its developing peers, Southeast Asia’s largest economy relies heavily on trade, leaving it exposed to slowing global growth.

“Major trading partners like the US, China, and Japan are experiencing contractions, as indicated by the Purchasing Managers’ Index (PMI), leading to reduced international demand for Indonesian commodities,” Yazid said.

“This adds further strain on the middle class.”

Adinova Fauri, an economic researcher at the Centre for Strategic and International Studies (CSIS), said Indonesia’s strained middle class “reflects deeper structural issues, particularly the impact of deindustrialisation in Indonesia.”

“Manufacturing, which used to absorb a large share of the labour force, is no longer able to do so. A significant portion of the workforce has shifted to the services sector, much of which is informal and offers lower wages and minimal social security,” Fauri told Al Jazeera.

To rectify the situation, labour conditions and productivity need to be improved, he said.

“We can no longer compete with countries like Vietnam or Bangladesh solely on low wages. Instead, we need to strengthen labour conditions and regulations to access new markets, such as the US, which prioritise better labour standards,” Fauri said.

“Productivity is also a critical issue, not only in terms of skills but also in relation to workers’ health. We should also learn from other countries by investing in research and development and fostering innovation to boost productivity.”

Indonesian President Prabowo Subianto attends a meeting with Chinese President Xi Jinping at the Great Hall of the People in Beijing on November 9, 2024 [Florence Lo/Pool via AFP]

The inauguration of President Prabowo Subianto last month as Indonesia’s eighth leader, replacing Joko Widodo, popularly known as Jokowi, has raised hopes for the economy in some quarters.

During his election campaign, Prabowo pledged to achieve GDP growth of 8 percent and eliminate poverty and stunting in children by rolling out a free school lunch programme.

Meanwhile, Nasution and her family are still picking up the pieces of their shattered life.

After buying many big-ticket items such as furniture and stages on credit, she and her husband quickly found themselves in a financial hole once business dried up.

“We sold our car, sold our land and mortgaged our house,” Nasution said. “It died. Our business just died completely.”

Nasution’s husband took up the first job he could find, a role harvesting the fruit of oil palms for about 2.8 million rupiahs ($179) a month.

Nasution took up a cleaning job, working 8am to 1pm six days a week for a monthly salary of about 1 million rupiahs ($63).

These days, the couple spend a little less than the two-million-rupiah ($127) threshold that marks entry to the middle-class bracket.

“Our life is so different now, and we are still not stable like we were before. We need capital to start the business again, but we can’t save any money to do so,” Nasution said. “We would need to buy all the equipment for the parties that we owned before or rent it.”

“We only have enough money to just barely live, but life is full of ups and downs, and hopefully things will turn around,” she added.

“I just leave it up to God at this point.”



Source link

Tags: Asia PacificBusiness and EconomyeconomyIndonesiaPoverty and Development
Previous Post

In Sri Lanka elections 2024, Presidentâ€s NPP party heads for landslide | EconomyNext

Next Post

Opposition leader set for sentence on election law violation charges

Related Posts

Train derails near Russia-Ukraine border, killing at least seven

Train derails near Russia-Ukraine border, killing at least seven

June 1, 2025
5
South Korea’s snap presidential election 2025: All you need to know

South Korea’s snap presidential election 2025: All you need to know

June 1, 2025
3
Next Post
Opposition leader set for sentence on election law violation charges

Opposition leader set for sentence on election law violation charges

  • Trending
  • Comments
  • Latest
Family calls for change after B.C. nurse dies by suicide after attacks on the job

Family calls for change after B.C. nurse dies by suicide after attacks on the job

April 2, 2025
Pioneering 3D printing project shares successes

Product reduces TPH levels to non-hazardous status

November 27, 2024

Hospital Mergers Fail to Deliver Better Care or Lower Costs, Study Finds todayheadline

December 31, 2024

Police ID man who died after Corso Italia fight

December 23, 2024
Harris tells supporters 'never give up' and urges peaceful transfer of power

Harris tells supporters ‘never give up’ and urges peaceful transfer of power

0
Des Moines Man Accused Of Shooting Ex-Girlfriend's Mother

Des Moines Man Accused Of Shooting Ex-Girlfriend’s Mother

0

Trump ‘looks forward’ to White House meeting with Biden

0
Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

Catholic voters were critical to Donald Trump’s blowout victory: ‘Harris snubbed us’

0
Northern Ireland’s lone synagogue staves off decline by engaging Christian neighbors

Northern Ireland’s lone synagogue staves off decline by engaging Christian neighbors

June 1, 2025
Inzaghi won't rule out Inter exit after final loss

Inzaghi won’t rule out Inter exit after final loss

June 1, 2025
Costco plans new checkout option members should love

Costco plans new checkout option members should love todayheadline

June 1, 2025
EU threatens countermeasures over Trump's steel tariffs hike

EU threatens countermeasures over Trump's steel tariffs hike todayheadline

June 1, 2025

Recent News

Northern Ireland’s lone synagogue staves off decline by engaging Christian neighbors

Northern Ireland’s lone synagogue staves off decline by engaging Christian neighbors

June 1, 2025
0
Inzaghi won't rule out Inter exit after final loss

Inzaghi won’t rule out Inter exit after final loss

June 1, 2025
3
Costco plans new checkout option members should love

Costco plans new checkout option members should love todayheadline

June 1, 2025
3
EU threatens countermeasures over Trump's steel tariffs hike

EU threatens countermeasures over Trump's steel tariffs hike todayheadline

June 1, 2025
4

TodayHeadline is a dynamic news website dedicated to delivering up-to-date and comprehensive news coverage from around the globe.

Follow Us

Browse by Category

  • Africa
  • Asia
  • Basketball
  • Business & Finance
  • Climate Change
  • Crime & Justice
  • Cybersecurity
  • Economic Policies
  • Elections
  • Entertainment
  • Entrepreneurship
  • Environmental Policies
  • Europe
  • Football
  • Gadgets & Devices
  • Health
  • Medical Research
  • Mental Health
  • Middle East
  • Motorsport
  • Olympics
  • Politics
  • Public Health
  • Relationships & Family
  • Science & Environment
  • Software & Apps
  • Space Exploration
  • Sports
  • Stock Market
  • Technology & Startups
  • Tennis
  • Travel
  • Uncategorized
  • Us & Canada
  • Wildlife & Conservation
  • World News

Recent News

Northern Ireland’s lone synagogue staves off decline by engaging Christian neighbors

Northern Ireland’s lone synagogue staves off decline by engaging Christian neighbors

June 1, 2025
Inzaghi won't rule out Inter exit after final loss

Inzaghi won’t rule out Inter exit after final loss

June 1, 2025
  • Education
  • Lifestyle
  • Technology & Startups
  • About us
  • Contact
  • Advertise with Us
  • Privacy & Policy

© 2024 Todayheadline.co

Welcome Back!

OR

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Business & Finance
  • Corporate News
  • Economic Policies
  • Entrepreneurship
  • Market Trends
  • Crime & Justice
  • Court Cases
  • Criminal Investigations
  • Cybercrime
  • Legal Reforms
  • Policing
  • Education
  • Higher Education
  • Online Learning
  • Entertainment
  • Awards & Festivals
  • Celebrity News
  • Movies
  • Music
  • Health
  • Fitness & Nutrition
  • Medical Breakthroughs
  • Mental Health
  • Pandemic Updates
  • Lifestyle
  • Fashion & Beauty
  • Food & Drink
  • Home & Living
  • Politics
  • Elections
  • Government Policies
  • International Relations
  • Legislative News
  • Political Parties
  • Africa
  • Asia
  • Europe
  • Middle East
  • Artificial Intelligence
  • Cybersecurity
  • Emerging Technologies
  • Gadgets & Devices
  • Industry Analysis
  • Basketball
  • Football
  • Motorsport
  • Olympics
  • Climate Change
  • Environmental Policies
  • Medical Research
  • Science & Environment
  • Space Exploration
  • Wildlife & Conservation
  • Sports
  • Tennis
  • Technology & Startups
  • Software & Apps
  • Startup Success Stories
  • Startups & Innovations
  • Tech Regulations
  • Venture Capital
  • Uncategorized
  • World News
  • Us & Canada
  • Public Health
  • Relationships & Family
  • Travel
  • Research & Innovation
  • Scholarships & Grants
  • School Reforms
  • Stock Market
  • TV & Streaming
  • Advertise with Us
  • Privacy & Policy
  • About us
  • Contact

© 2024 Todayheadline.co