Antara News·Indonesia·Friday, October 9, 2026 at 10:21 AM UTC

Indonesia strives to shield middle class from economic decline

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Anita Dewi, Uyu Liman

Jakarta (ANTARA) - The Indonesian Coordinating Ministry for Community Empowerment is devising a number of strategies to bolster the economically pressured middle class, aiming to prevent more citizens from slipping into financial vulnerability.

“We must prevent those who have moved up from falling back down (into vulnerability). We need to ensure they (the middle class) remain stable and continue to rise,” Coordinating Minister for Community Empowerment Abdul Muhaimin Iskandar said here on Friday.

He emphasized that protecting this demographic requires serious attention within the national community empowerment agenda. Current economic conditions highlight an urgent need for strategies that not only prevent the middle class from regressing but also secure opportunities for their upward mobility, he noted.

According to Iskandar, elevating the middle class demands interventions that go beyond basic social protection. The government must ensure this demographic has access to productive employment, financing, skills development, broader markets, and business expansion opportunities.

These measures aim to drive tangible income growth rather than merely keeping economic conditions from deteriorating.

A primary focus is ensuring that micro, small, and medium enterprises (MSMEs) and the creative economy players receive appropriate incentives. This support is designed to prevent businesses from stagnating, allowing them instead to increase production capacity, broaden their market reach, and generate real economic growth.

Iskandar noted that state-owned enterprises (SOEs) must play an active role in strengthening the business ecosystem. He suggested that SOEs channel their support into developing partnerships, opening market access, strengthening supply chains, and creating space for MSMEs to scale up.

Furthermore, strengthening MSMEs must involve transitioning communities toward genuine economic independence.

Meanwhile, MSME Minister Maman Abdurrahman stated that the government is currently running the Inclusive Micro Business Capacity Acceleration (Laksmi) program. This initiative assists former social assistance recipients in transitioning into independent entrepreneurs.

The program has been trialed with approximately 1,700 individuals and has the potential to expand to around 100,000 beneficiaries.

This assistance extends beyond access to financing. It encompasses mindset shifts, capacity building, certification, product development, marketing, and commercial partnerships.

Abdurrahman emphasized that this comprehensive approach is crucial to ensure citizens not only receive capital but also acquire the practical skills to manage and sustainably grow their businesses.

In the creative economy sector, various initiatives — such as Creative Village, Creative Hub, and Creative by Indonesia — are being designed to deliver measurable economic impacts rather than merely hosting localized events. These targeted impacts include job creation, revenue growth, product development, and broader market access.

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