See More on Facebook

News

115 million Indonesians not yet economically secure: World Bank

Approximately 115 million Indonesians, or 45 per cent of the country’s population, have yet to achieve economic security and the lifestyle of the middle class, the World Bank’s latest report shows.


Written by

Updated: January 31, 2020

While free from poverty, approximately 115 million Indonesians, or 45 percent of the country’s population, have yet to achieve economic security and the lifestyle of the middle class, the World Bank’s latest report shows.

The Aspiring Indonesia – Expanding the Middle Class report published on Thursday highlights the need to adopt the right policies so that the so-called aspiring middle class can attain the economic security of the middle class.

Members of the “aspiring middle class” are considered those who are not poor but have yet to achieve economic security, spending between Rp 532,000 (US$39.1) and Rp 1.2 million per person per month.

Meanwhile, the middle class consists of economically secure Indonesians with little chance of falling into poverty or vulnerability, spending between Rp 1.2 million and Rp 6 million per person per month.

“Having the right policies can unlock Indonesia’s development potential and propel the country to high-income status,” said World Bank acting country director for Indonesia Rolande Pryce in Jakarta at the launch event for the report.

Strengthening tax policies and administration, as well as broadening the tax base, will be required to finance investments for development, he added.

President Joko “Jokowi” Widodo conveyed in his inaugural speech in October 2019 the nation’s vision to be a developed country with a gross domestic product (GDP) among the top five in the world and a near-zero percent poverty rate.

World Bank regional director for equitable growth, finance and institutions Hassan Zaman said that to grow the middle class, Indonesia needed to create more jobs with better pay backed by a robust system to provide quality education and universal health coverage.

“Growing the middle class requires reforms to improve the business environment to create good jobs, investment in the necessary skills and social protection systems that cushion against shocks,” Zaman said.

The report mentioned that Indonesia had made remarkable progress in reducing poverty over the past 15 years, reaching below 10 percent today. During this period, the report stated, the country witnessed its middle class grow from 7 percent to 20 percent of the population.

The report highlighted that Indonesia’s GDP was US$657 per person in 1967, making it one of the poorest countries in the world. Over the next 50 years, it stated, growth averaged 5.6 percent annually and the per capita GDP was now six times higher at nearly $4,000.



Enjoyed this story? Share it.


The Jakarta Post
About the Author: The Jakarta Post is one of Indonesia's leading English-language daily newspapers.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

News

Taiwan: 720,000 people registered for purchasing face masks online

Taiwan’s Central Epidemic Command Center (CECC) on Friday announced that more than 722,000 people — 600,000 using the NHI app and 122,000 more using the Emask system — had successfully registered for purchasing face masks as of 1 p.m. Asked about people who have reportedly tried to register again, CECC Chief Commander Chen Shih-chung called on the public to stop, stressing that authorities are committed to providing a set of face masks to each user prior to March 18, the official deadline for registration. Regarding some reported phone scams on payment requirements for face masks, Chen asked users to remain vigilant. Access is limited to Taiwan residents who need to register their NHI number, obtain proper digital certification and downloa


By Asia News Network
March 13, 2020

News

Covid-19 outbreak will continue for a year or longer; more stringent measures may need to be put in place, says PM Lee

 In a video address on his social media channels, PM Lee emphasised that the situation in Singapore remains under control. The Covid-19 outbreak will continue for some time – a year, and maybe longer – said Prime Minister Lee Hsien Loong in his second national address on the situation on Thursday (March 12). But if Singaporeans keep up their guard and take practical precautions, the country will be able to keep its economy going and people will be able to carry on with their daily lives, he said. In a video address on his social media channels, PM Lee emphasised that the situation in Singapore remains under control. The disease outbreak response level will not be stepped up to red, the highest level, he said. It is c


By The Straits Times
March 13, 2020

News

Foreigners play their part in Shanghai’s epidemic prevention

 Expat volunteers have been active in helping the city overcome the COVID-19 outbreak. Twelve foreign residents in Shanghai have joined a volunteer team to help with the city’s COVID-19 prevention and control. Located in Minhang district, the team was established on Feb 10 by the Jinfeng International Community Development Association, which aims to promote the development of Huacao town and the Jinfeng International Community by organising themed activities and public welfare events. Pakistani Amir Shafiq Khan joined the team to give back. “It’s easy to run away to another country, but I felt that my family and I should contribute to China in this difficult time as it has always offered opportunities to us,” says Khan, who has lived in


By China Daily
March 13, 2020

News

Asian stock markets take cue from US to hit fresh lows

ST Index careens into bear territory for the first time since January 2016 Many stock markets across Asia, including in Singapore, followed the United States into bear territory after US President Donald Trump stopped short of offering a detailed rescue package as the coronavirus outbreak was declared a global pandemic. Adding to fears, oil prices slumped further. The Straits Times Index (STI) careened into bear territory for the first time since January 2016. The last time that the STI was in a bear market – where stocks have fallen at least 20 per cent from their recent high – was during the oil price rout in 2016. The STI finished down 3.77 per cent yesterday, and more than 21 per cent down from a peak of 3,407.02 on April 29 last year.


By The Straits Times
March 13, 2020

News

askST: Can coronavirus be spread by sweat, or via activities such as singing?

There is currently no evidence showing that the virus can be transmitted through one’s perspiration. Concerns have been raised over social activities such as singing and exercising in the light of the coronavirus outbreak. As of Wednesday (March 11), Singapore’s largest Safra Jurong cluster of confirmed coronavirus cases went up to 40, against a total of 178 cases. The patients, who had attended a Feb 15 Chinese New Year celebration held in the ballroom of Joy Garden restaurant at Safra Jurong, are members of a Hokkien singing group. This has raised concerns as to whether the disease, known as Covid-19, can be transmitted through singing. Similar concerns have been expressed about whether the virus can be spread through sweat b


By The Straits Times
March 12, 2020

News

Bangladesh to benefit from coronavirus fallout: survey

Study says globally renowned companies are planning to shift work orders from China to other Asian countries, including Bangladesh. Bangladesh will benefit from the fallout of the coronavirus as most of the globally renowned companies are planning to shift work orders from China to other Asian countries, including Bangladesh, according to a new survey. Hong Kong-based QIMA, a leading provider of supply chain compliance solutions and which partners with brands, retailers and importers to secure, manage and optimise their global supply network, surveyed the executives of more than 200 globally renowned companies between February and early March. Half of the survey respondents are considering shifting supplier sourcing away from China to new countries or r


By Daily Star
March 12, 2020