Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Muhadjir Effendy stated that the government continues to seek solutions to the issue of the shrinking middle-class population, including the provision of social protection such as health care and employment.

Effendy told the press here on Thursday that the decline in the middle-class population is followed by an increase in members of the aspiring middle-class population.

However, concurrently, the rate of extreme poverty has declined, thereby indicating an improvement in the community's economic class. He noted that most of those members leveled up to the aspiring middle class.

To support welfare improvement and push for an increase in the middle-class population, he ensured that the government continued to seek solutions. One of the solutions is to provide social safety net programs.

"Now, there are two guarantees for them, especially for the working class, the formal worker group. The target of health insurance is universal health coverage," he remarked.

According to the minister, regions are encouraged to allocate a budget to ensure their residents can get health insurance and free health services.

Apart from that, there is employment social protection that includes Old Age Security (JHT), Work Accident Security (JKK), Death Security, Retirement Security, and Job Loss Security (JKP) programs.

The minister explained that a decline in the middle-class population was caused by the prolonged impact of the COVID-19 pandemic because five years before the pandemic hit in 2020, an increase in the middle class had been recorded.

Earlier, Statistics Indonesia (BPS) data as of August 2024 showed a decline in the middle-class population. The data showed that the number declined from 57.33 million in 2019 to 53.83 million in 2021.

The BPS also recorded that the number declined from 49.51 million in 2022 to 48.27 million in 2023 and 47.85 million in 2024.

Nevertheless, the data also showed that the number of people in the aspiring middle-class category increased from 128.85 million to 137.5 million in 2024.


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Translator: Prisca Triferna, Raka Adji
Editor: Tia Mutiasari
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