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Middle Class, the Winners of Indonesia's Economic Growth

posted Aug 14, 2012, 3:54 AM by Brook Ross   [ updated Aug 14, 2012, 3:55 AM ]

Tuesday, 14 August, 2012 | 16:22 WIB

TEMPO InteractiveJakarta: Minister of Planning and National Development Armida Alisjahbana says the middle-classes are benefiting most from Indonesia’s strong economic growth.

Based on the Central Bureau of Statistics, the first and second quarter of 2012, Indonesia experienced economic growth rates of 6.3 percent and 6.4 percent.

"Economic growth in Indonesia is marked by a growing middle class. In general, they are the ones enjoying the growth compared to the highest or lowest-income communities," said Armida at the Bappenas office on Monday.

The middle class, said Armida, generally work in the private sector so they are enjoying the high revenue growth despite declining exports and uncertain global economic conditions.

The growth of the middle class is related to economic growth that is consistently expanding formal employment, which to some extent is dominated by the middle to upper classes, he said.

"However, as a result, there’s a bigger gap between them and the lower classes or those with lower income. I'm not surprised that the Asian Development Bank says that Indonesia’s coefficient is increasing," said Armida.

"Basically our economic growth is being enjoyed by people of all incomes. This is evidence from the decline in unemployment and poverty. However, the growth in the middle class is much faster," said Armida, adding that her department was still researching the phenomenon. ISTMAN MP