DIGIVESTASI - Member of Commission XI of the House of Representatives from the PKS faction, Anis Byarwati, reminded the government of the potential negative impact of the restrained purchasing power and the declining number of middle class on the domestic economy. Anis emphasized that a decline in consumption among the middle class could hamper national economic growth. “The growth of the middle class has great potential in driving increased consumption and, ultimately, accelerating national economic growth. However, if the middle class shrinks, this can dampen economic growth,” Anis said in a written statement received on Tuesday (3/9/2024). 

Anis asked the government to avoid policies that are counterproductive and can reduce the purchasing power of the middle class. He highlighted fiscal and monetary policies, such as the planned increase in VAT from 11% to 12% as well as the benchmark interest rate that has increased since April and has not been lowered, as factors that suppress the middle class.

Furthermore, Anis stated that the impact of the Covid-19 pandemic is still being felt in the economy, with 9.06 million people from the middle class downgrading until 2024. According to him, the government needs to introduce policies that can increase the income of the middle class and protect vulnerable groups from falling into poverty. “The government must be able to create more jobs. In addition, the government needs to convince investors to open investment opportunities that can create jobs, especially for the middle class,” Anis explained. 

Anis also suggested that the government postpone the VAT increase to 12% and ensure there is no fuel price increase that could affect transportation costs in the near future. He also suggested that the Single Tuition Fee (UKT) increase be postponed for the next few years.

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