Attention Should also be Given to the Middle Class

Kompas/Totok Wijayanto

Dwellers of semi-permanent buildings along the railway tracks in Kampung Bandan area, North Jakart, with the background of multi-storied residential buildings on Tuesday (23/5). The poverty rate per September 2016 reached 27.76 million people, or 10.70 percent of the total population. This year, the government targets the poverty will decline to 10.5 percent. To accelerate reduction in the economic inequality pace, the government will raise and empower 40 percent of the poor population.

The Covid-19 pandemic has had a severe impact on the people: an increase in the number of poor and underprivileged.

The social protection program provided by the government has managed to curb the increase in the number of poor people to 10.14 percent as of the second quarter of 2021. The figure is below the World Bank\'s projection of 11.2 percent. However, the number is still higher than 9.22 percent recorded in September 2019.

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Vice President Ma\'ruf Amin, during a visit to the Kompas editorial office on 23 Sept., said the government\'s priority was to eliminate extreme poverty by 2024. Extreme poverty, according to international standards, refers to people who live on less than US$1.9 or Rp 29,000 per day. In 2019, the number of extremely poor people was 3.5 percent.

Although the government’s program is still focused on the poor population, attention should also be given to vulnerable groups and the aspiring middle class, who number160 million, as well as the middle class group, with an income of Rp 1.2 million to Rp 6 million per month and who number 50 million people.

Their vulnerability to poverty or becoming a vulnerable group is not the same, but their economic capacity has been greatly affected by the Covid-19 pandemic. Data explored in the Kompas Economic Discussion on Tuesday (7/9/2021) showed that the higher a person’s income, the higher their savings, and vice versa. Vulnerable groups and the aspiring middle class spend most of their income on food, and their income has been reduced or even cut off due to layoffs.

Kompas/Totok Wijayanto

People carrying out their activities in front of a semi-permanent makeshift house in the densely-populated area of Muara Angke, Penjaringan, North Jakarta, Monday (17/7). From the poverty data released by the Central Statistics Agency, in the September 2016-March 2017 period, the number of poor people in the cities has increased by 188,190 people from the 10.49 million people in September 2016 to 10.67 million people in March 2017.

Another vulnerability is the decline in the ability of families or individuals to afford nutritious food. This affects pregnant women, children under five and the elderly. For children, prolonged malnutrition can hamper physical and mental growth. Basic vaccinations for children under five and regular check-ups for pregnant women have also been hampered over fears of contracting Covid-19 or that health services are not fully operational.

We hope that the Health Ministry’s structural reforms to primary health care can address this profound threat to Indonesia\'s future.

Prior to the Covid-19 pandemic, the government’s priority was to reduce maternal and infant mortality rates and stunting. We hope that the Health Ministry’s structural reforms to primary health care can address this profound threat to Indonesia\'s future.

The implementation and effectiveness of various social protection programs need to be evaluated and consolidated to maximize their benefits. There is a proposal to provide universal social benefits, with assistance of Rp 1 million to Rp 1.5 million per family per month for the poor, vulnerable groups and the aspiring middle class. The cash assistance can help families meet their minimum needs, but will not discourage them from working.

(This article was translated by Hendarsyah Tarmizi)