Indonesia’s economy suffers from ‘long COVID’ as middle class shrinks

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

According to the Central Statistics Agency (BPS), the proportion of middle-class Indonesians fell from 21.4% of the 267 million population in 2019 to 17.1% of the 289 million population in 2024, also classified as the “aspirational middle class”. the proportion of people made. It rose slightly from 48.2% to 49.2%. Those considered vulnerable increased from 20.6% to 24.2% in the same period. In absolute terms, the middle class decreased by 9.5 million people.

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