Indonesia's middle-class resilience requires bolstering quality job opportunities, according to Mandiri Institute. Their analysis highlights 86 million people in the transitional middle class vulnerable to economic shocks. Chief Economist Andry Asmoro stresses raising worker productivity.
Indonesia's economic resilience holds firm, supported by household consumption contributing 54 percent to GDP and cushioning external shocks.
Mandiri Institute reports a significant demographic shift, with 86 million people—one-third of the population—in the transitional middle class, including Upper Aspiring Middle Class and Lower Middle Class. From 2019 to 2025, Lower MC declined by over 11 million, Upper AMC stagnated, while Middle MC and Upper MC rose by 416,000.
"The next challenge is ensuring transitional groups have sufficient momentum to sustainably advance to more stable economic levels," said Andry Asmoro, Chief Economist of Bank Mandiri. Over 50 percent of this group works in the formal sector but lags 28 percentage points behind established middle classes, limiting asset accumulation.
Their spending prioritizes essentials like mobility (20 percent), housing (13 percent), and bills (10 percent), with only 21 percent of Upper AMC households holding liquid assets. Estimates indicate over 2 million are ready to ascend with quality jobs.
"Job expansion must pair with worker productivity gains, the key to real, sustainable income rises," Asmoro added. Bank Mandiri commits to inclusive financing and financial literacy.
