Serang. Deputy Finance Minister Thomas Djiwandono said that the Covid-19 pandemic has caused a significant decline in Indonesia's middle class, which continues to struggle with the lasting economic impact.

Speaking at a media gathering in Anyar, Serang in Banten Province on Wednesday, Thomas said that pandemic-triggered layoffs and reduced consumer spending have particularly affected the middle class.

“The challenges faced by the middle class are not due to poor policies but largely because of the pandemic,” Thomas explained.

Economic Strain Cuts Indonesia’s Middle Class by 8.5 Million Since 2018

During the pandemic, government support was primarily directed at lower-income groups, while the middle class did not fully benefit from social assistance programs, resulting in a slower economic recovery.

Over the past five years, the proportion of formal middle-class workers has slightly decreased, from 61.71 percent in 2019 to 59.36 percent in 2024. Currently, the middle class and those transitioning into it contribute 81.49 percent of national consumption.

According to the National Socioeconomic Survey (Susenas), as of March 2024, Indonesia’s middle class comprised 47.85 million people (17.13 percent), with an additional 137.50 million people (49.22 percent) on the verge of entering the middle class, representing a combined 66.35 percent of the population.

Thomas emphasized the need for sustained efforts to protect the welfare of the middle class and urged the incoming Prabowo Subianto administration to focus on long-term solutions, particularly by boosting investment to create jobs.

“This is a key challenge for the Prabowo administration—to find long-term solutions that bring us back to pre-pandemic levels,” Thomas concluded.