Indonesia's middle class shrinks as new president aims for economic growth

Indonesia's middle class is shrinking, with recent data showing about 48 million people, or 17% of the population, classified as middle class. This is down from 57 million, or 21%, in 2019. The decline raises concerns about the country's economic growth potential. New President Prabowo Subianto aims to boost Indonesia's GDP growth from 5% to 8% annually. However, the shrinking middle class and rising "aspiring middle class" indicate economic challenges, including job scarcity and shifts to gig economy roles. Despite these concerns, some indicators suggest growth in middle-class spending, particularly in luxury goods. Australian exporters remain optimistic, with increased student enrollments and record beef exports to Indonesia, indicating continued demand from the middle class.