Indonesia's middle class has shrunk by 10 million people, devoured by rising prices, eroded by debt installments, burdensome policies, and even being shunned by various taxes. Due to the declining number and purchasing power of the middle class, household debt growth in 2024 will slow to below 6%, lower than the 9% growth in 2023. The Infobank Research Bureau predicts that the number of the middle class will still shrink in 2025 due to four factors. The banking industry must be aware of the middle class's stalled debt. Why is the Joko Widodo administration, which is continued by Prabowo Subianto, not siding with the middle class?
THE 2025 calendar has been opened. It brings heavier challenges for society. Business actors are bracing themselves to navigate the Year of the Wood Snake—a zodiac sign believed to carry traits of introspection and mystery. Equally mysterious is the ambiguity surrounding 2025, filled with uncertainties.
On a global scale, economic prospects are dimming due to shifts in the geopolitical and economic landscape following the return of Donald Trump as President of the United States. Trump is likely to impose high tariffs on other countries, which would slow down economic growth in China and Europe. Additionally, a stronger U.S. dollar would pressure global currencies and trigger capital outflows from emerging markets.
