Indonesia's Shrinking Middle Class: Economic Concerns and COVID-19 Impacts
Understanding Indonesia's Economic Crisis
Indonesia's shrinking middle class has raised concerns among economists, highlighting the ongoing economic challenges the country faces.Households define the middle class as those with monthly expenditures ranging from 2 million rupiah to 9.9 million rupiah, which translates to approximately $130 to $650. Several factors, including the lingering effects of the COVID-19 pandemic, have exacerbated these issues.
Key Factors Affecting Household Expenditures
- Economic downturns due to global factors
- COVID-19's impact on employment rates and income
- Inflation affecting purchasing power
Implications for the Future
As Indonesia grapples with these economic realities, the future of its middle class looks uncertain. The need for effective policy responses is more critical than ever to support vulnerable households.
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