This is a Shift in Indonesian Middle-Class Spending Over the Last 10 Years

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Nabilah Muhamad 29/08/2024 12:43 WIB

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According to data from the Central Bureau of Statistics, the spending patterns of Indonesia's middle class have shifted slightly over the past 10 years.

Spending Proportions of the Indonesian Middle Class (2014-2024)

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Spending Proportions of the Indonesian Middle Class (2014-2024)

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According to data from the Central Statistics Agency (BPS), the spending patterns of Indonesia's middle class have shifted over the past 10 years.

In 2014, 45.53% of middle-class expenditure was allocated to food. By 2024, this proportion had decreased to 41.67%.

During this period, the proportion of middle-class expenditure on housing also fell from 32.87% to 28.52%.

Expenditure on education decreased from 4.32% to 3.66%; and on health from 3.27% to 2.86%.

Conversely, there was an increase in the proportion of expenditure on other goods/services, taxes, vehicles, celebratory expenses, clothing, durable goods, and entertainment, as shown in the graph.

"But generally, the priorities for middle-class spending are food, housing, and other goods and services," said Amalia Adininggar Widyasanti, Acting Head of BPS, at a working meeting with Commission XI of the DPR (House of Representatives) on Wednesday, August 28, 2024.

The Indonesian middle class, as defined by BPS, comprises individuals with expenditures between 3.5 and 17 times the national poverty line.

In 2024, the number of Indonesians in the middle class reached 47.85 million people, or 17.13% of the total population.

This is a decrease compared to the pre-pandemic period of 2019. At that time, the middle-class population reached 57.33 million people, or 21.45% of the total population.

"We identify that there is still a *scarring effect* from the pandemic on the resilience of the middle class," said Amalia.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."