Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, stated that the middle class serves as the backbone of Indonesia’s economy.

The government continues to pursue various efforts to ensure the availability of job opportunities for this group.

This is crucial because the middle class is currently facing multiple pressures, even though their contribution to the national economy remains substantial.

“The middle class truly forms the backbone of our economy due to its significant contribution,” Susiwijono said, as quoted by Kontan on Wednesday (April 15, 2026).

Technological disruptions such as artificial intelligence (AI), along with the shift of jobs from the formal to the informal sector—especially in services—have added pressure on the middle class.

Data from the National Socioeconomic Survey (Susenas) shows that since 2019, the proportion of middle-class employment in the formal sector has continued to decline.

In the industrial sector, which absorbs many middle-class workers, the share of employment dropped from 25.64 percent in 2019 to 22.98 percent in 2024.

Additionally, a survey by the Indonesian Employers Association (Apindo) revealed that 67 percent of companies in Indonesia do not plan to hire new employees in the near future.

The government is working to strengthen the resilience of the middle class by creating jobs and protecting purchasing power.

“Government programs are not only aimed at the poor but also at the middle class, as they are the backbone of the economy,” Susiwijono emphasized.

1.5 million workers remain unemployed

An internal Apindo survey indicates that most companies in Indonesia are reluctant to recruit new employees.

Meanwhile, around 3.5 million new job seekers enter the workforce annually. Each 1 percent of economic growth can absorb between 200,000 and 400,000 workers if the investment is labor-intensive.

“If all investments are labor-intensive, absorption could reach 400,000 workers. However, if they are more capital-intensive, it may only be 200,000 or even 100,000. So with 5 percent growth and entirely labor-intensive investment, only about 2 million workers would be absorbed, leaving 1.5 million unemployed,” said Apindo’s Head of Manpower, Bob Azam, as quoted by Kompas.com on Tuesday (April 14, 2026).

Bob added that currently 67 percent of companies in Indonesia have no plans to recruit new employees over the next five years.

This situation needs serious attention as it could impact the broader economy.

“And 67 percent of companies have no intention to hire new workers. This is something that must be carefully considered,” he explained.

Bob also suggested that policymakers should encourage more labor-intensive investment while not neglecting capital-intensive sectors.

This is because Indonesia’s workforce structure, particularly among the lower and middle segments, is still dominated by labor-intensive industries. At the same time, investment policies should be flexible—protecting workers while remaining attractive to investors—so that investment can flow in more quickly.

“Investment in labor-intensive sectors has been declining over time, even though, given our workforce composition dominated by lower- and middle-income groups, this sector is still highly needed,” Bob concluded.