Growing or Shrinking? How Indonesia’s Middle Class is Really Doing

Growing or Shrinking? How Indonesia’s Middle Class is Really Doing

Indonesia’s middle class is the backbone of its economy whose growth relies mostly on household consumption. The middle class accounted for 38.3 per cent of total household consumption in 2024. They also pay a significant share of all indirect tax revenues and help create jobs as business owners. There has, however, been some debate about whether Indonesia’s middle class is shrinking or growing. It is important to get the narrative right.  The O…