This is the Employment Sector of Aspiring Middle Class in Indonesia

Economics & Macro

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Nabilah Muhamad 03/09/2024 17:27 WIB

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According to a report by LPEM FEB UI, in 2023 the majority of Indonesia's aspiring middle class worked in the agricultural and low-value service sectors.

Proportion of Indonesia's Potential Middle Class Population by Employment Sector (2014-2023)

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This is the Employment Sector of Aspiring Middle Class in Indonesia

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Proportion of Indonesia's Potential Middle Class Population by Employment Sector (2014-2023)

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According to a report by the Institute for Economic and Community Research, Faculty of Economics and Business, University of Indonesia (LPEM FEB UI), in 2023, 144 million people, or 53.4% of Indonesia's population, fell into the *aspiring middle class* category.

In 2023, 72.3% of the aspiring middle class worked in low-value service and agricultural sectors. This proportion has not significantly changed from 2014, when it was 72.6%.

"This indicates a lack of significant improvement in labor mobility towards more productive sectors," wrote LPEM FEB UI in its report.

They also noted that the proportion of the aspiring middle class working in the manufacturing sector decreased from 13.3% (2014) to 12.7% (2023).

Meanwhile, those working in the high-value-added service sector increased from 5.6% (2014) to 6.4% (2023).

"Although there was a slight increase in the proportion of the aspiring middle class working in the high-value-added service sector, most of them also shifted to the agricultural sector," wrote LPEM FEB UI.

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."