Shrinking Indonesian Middle Class: Why Are They Struggling? | Asia's Changing Middle Class | Insight

The growing middle class was once considered the engine of Indonesia’s leap to upper-middle income status. But 2024 revealed a startling statistic – the middle class in the world’s fourth most populous nation is shrinking, even as its economy grows at a healthy 5%. Compared to 2019’s numbers, over nine million Indonesians fell out of the middle class. What lies behind this drop? Is it simply the long-tail effect of COVID-19, or have taxation, inflation and inequality changed what it means to be middle class in Indonesia? And with a new president at the helm, promising an 8% GDP growth, will the middle class be lifted by Prabowo's economic plans, or dragged down by them? 00:00 Indonesia's struggling middle class 01:27 University graduate turned ride-hailing driver 04:17 Indonesia's shrinking middle class 06:06 Economic importance of Indonesian middle class 08:53 Why GDP growth did not translate to middle class growth 12:03 What a family gave up during the COVID-19 pandemic 15:20 Effects of COVID-19 remain 16:39 Workers turn to informal, freelance jobs 19:36 How lower spending affects Indonesia's economy 22:32 Many young university graduates unemployed 24:36 Why unemployment among young people is high 26:06 Importance of manufacturing sector 30:44 How to increase income 33:10 Why are students protesting? 34:11 80,000 Indonesians retrenched 37:55 Measures to help the middle class 40:59 Will US tariffs affect Indonesia? 41:40 How the government can help the middle class 43:01 Can Indonesia reach high income status? ========= ABOUT THE SHOW: Insight investigates and analyses topical issues that impact Asia and the rest of the world. ================== #CNAInsider #CNAInsight #Asia #Indonesia #Work #Employment #Economy #MiddleClass #SoutheastAsia For more, SUBSCRIBE to CNA INSIDER! https://cna.asia/insideryoutubesub Follow CNA INSIDER on: Telegram: https://t.me/CNAInsiderSG Instagram:   / cnainsider   Facebook:   / cnainsider   Website: https://cna.asia/cnainsider