Jakarta, Thekabarnews.com—The middle class in Indonesia is getting smaller; thus, they have less money to spend. Such a situation makes things worse for the economy. Because of these developments, some are anxious about how much people will buy in the future.

People often nickname the middle class the “sandwich generation” since they are in between the rich and the destitute.

Many people think they can afford items, but they do not always satisfy the qualifications for government programs that support people with low incomes. This situation can lead to feelings of frustration and insecurity about their financial situation.

They do not experience the tranquility that comes with having more money. Such conditions may make them more anxious about their financial future and stability.

Economists argue that this rising pressure could have profound consequences for the economy as a whole. For example, a reduction in the middle class’s buying power could slow down domestic consumption. In particular, domestic consumption has been a major driver of Indonesia’s economic growth for a long time.

UOB Indonesia’s economist, Enrico Tanuwidjaja, reveals that making the manufacturing sector stronger could be highly significant for supporting the middle class. It could also be important for keeping the economy thriving.

Enrico Tanuwidjaja added that creating more employment, especially in manufacturing, which needs many workers, might help maintain the middle class’s economy steadily.

“The largest challenge in Indonesia right now is not just on the production side but also on the demand side,” Tanuwidjaja said.

He stated that people are losing faith in the economy, which makes it harder for middle-class families to buy products. As a result, consumers spend less money, and the economy is less stable.

Deposit, Wealth Management, and Training Head of UOB Indonesia, Emillya Soesanto, also remarked that the number of people in Indonesia who are in the middle class has been falling down consistently over the past few years.

In 2021, 57.3 million people in Indonesia were middle class, which was 21.5 percent of the entire population. But by 2024, the number had plummeted to 47.9 million, or 17.1 percent of the population. In 2025, it went down even further, to 46.7 million individuals, which is 16.6 percent of the population.

According to economists, this trend will hurt the country’s economy in the long run. The middle class is important to Indonesia’s economy. They spend around 81.5 percent of all household money.

A long-term reduction in the middle class’s buying power could have a direct impact on the growth of the national economy. This is because the middle class is a large portion of the economy.

To be strong in the future, Indonesia’s middle class and economy may need to create more jobs. In addition, they may also need to keep people’s faith in the economy high. They may need to grow industries that are beneficial for the economy, like manufacturing.

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