The Industrial Sector Makes the Largest Contribution to Increasing Indonesia's Middle-Class Jobs

The World Bank reports that the industrial sector significantly contributed to increasing the proportion of middle-class jobs in Indonesia between 2011 and 2018. This is because the sector offers higher incomes compared to other domestic sectors.

Specifically, manufacturing wages contributed up to 27.1% to the increase in middle-class employment. Wages in the wholesale and retail trade, restaurant, and hotel sectors followed with a 24.6% contribution to the increase in middle-class jobs.

Wages in the construction sector contributed 15.6% to the increase in middle-class employment. Meanwhile, wage contributions from the transportation, warehousing, and communication sectors, and the financial services, insurance, real estate, and business services sectors were both at 10.9%.

Wages in the agricultural sector only contributed up to 0.3% to the increase in middle-class employment in Indonesia. Similarly, wages in the community, social, and personal service sectors only contributed 1.2%.

According to the World Bank, the creation of middle-class jobs is crucial for Indonesia to become a middle-income country. Currently, almost half of Indonesia's population still belongs to the aspiring middle class.

This means half of Indonesian society has successfully moved out of poverty and near-poverty. However, they have not yet been able to enjoy the middle-class standard of living for their families.