The wave of demonstrations that erupted in various regions of Indonesia recently has in part been driven by the widening gap between the wealthy and the poor. Economic inequality has become more evident, especially when compared to the generous benefits received by state officials, sparking public anger.

Data from Statistics Indonesia (BPS) shows that the Gini ratio—an indicator of income inequality—rose from 0.379 in March 2024 to 0.381 in September 2024. This reflects a worsening distribution of income in the country.

“Looking at the root cause, the reason why society reacts so strongly is indeed the problem of economic disparity,” explained senior economist Tauhid Ahmad in the detikSore program some time ago, quoted on Friday (September 5, 2025).

One of the clear indicators of the widening divide between rich and poor can be seen in savings data recorded by the Deposit Insurance Corporation (LPS). Savings of less than Rp 100 million have slowed in growth, while accounts holding more than Rp 5 billion have shown a sharp increase.

“Deposits under Rp 100 million are declining, but those above Rp 5 billion are growing rapidly. The question is whether there will be short-term measures to reduce this imbalance,” Tauhid said.

Slowing Growth in Savings

According to LPS, the growth of deposits below Rp 100 million stood at 26.3% during July 2016–July 2019. However, from July 2021 to July 2024, growth slowed to only 11.9%.

Deposits ranging from Rp 100 million to Rp 200 million also slowed—from 29.4% growth between July 2016–July 2019 to just 13.3% during July 2021–July 2024.

In contrast, savings of more than Rp 5 billion grew 29.7% in 2016–2019 and rose even higher, to 33.9%, between July 2021–July 2024.

Indonesia’s middle class is also facing worrying conditions. Many have slipped downward, while the World Bank reports that the middle class is increasingly lagging behind both the upper and lower classes. World Bank data shows the middle class shrank from 57.33 million people in 2019 to only 47.85 million in 2024.

“There are no concrete efforts to sustain the purchasing power of the middle class. Tax policies are especially important—such as music royalties, the 0.5% MSME tax, and VAT. In my view, these should be revised to boost the purchasing power of the middle class,” Tauhid emphasized.