The spending index of the lower-middle economic class is on the rise. Unfortunately, this is accompanied by a decrease in the savings index.

Andry Asmoro, the Chief Economist of Bank Mandiri, revealed that as of October 15, 2023, the spending index of the lower-middle economic class stood at 253.3. This figure shows an increase compared to the spending index of this group at the beginning of September 2023, which was 246.9.

However, the increase in spending is also accompanied by a decrease in the savings index of the lower-middle economic class. As of October 15, 2023, their savings index was 54.8, which is lower than the figure at the beginning of September 2023, which was 75.7.

Andry emphasized that this phenomenon deserves attention. It indicates that a portion of the lower-middle economic class is now spending more money than they earn.

"Yes, because some of the basic living expenses of the lower-middle economic class, including food and beverages, are now eating into their savings," Andry explained to Kontan.co.id on Friday, October 27.

Therefore, Andry sees the need for government intervention to ensure the consumption of the lower-middle economic class continues, primarily by strengthening their purchasing power. One way to achieve this is by accelerating the distribution of social assistance.

Meanwhile, the spending index of the upper economic class appears to be quite stable. As of October 15, 2023, it was 116.9, almost unchanged from the data in early September 2023. However, there is an increase in the savings index for this group. On October 15, 2023, the index was 98.9, up from 96.5 in early September 2023. Andry sees signs that the upper economic class is currently restraining their spending, even though they contribute about 51% to the total expenditure.

Andry believes that there is still potential to increase spending in the upper economic class segment. Therefore, government and business efforts are needed to stimulate this, such as holding shopping festivals, to boost consumption in the upper economic class.

Meanwhile, for the middle class, their spending index was 154.6, higher than the figure at the beginning of September 2023, which was 148.9. Similar to the lower-middle class, the savings index of the middle class has also eroded slightly, from 99.0 in early September 2023 to 98.8 by October 15, 2023.