Jakarta, CNBC Indonesia – Mandiri Spending Index (MSI) revealed an increasing trend of lower middle class households eating up their “solid” savings since April 2023, followed by a decrease in the amount of savings compared to 2022.
UI economist, Ninasapti Triaswati, sees the “solid” phenomenon of the middle class community more related to the increasing economic activities, while for the lower class, this is due to the increasing daily needs in line with the rise in half-unemployment.
It is expected that government spending through social assistance will increase during the election period to support 30% of the poor population. However, the middle class group, numbering around 30-60%, will be quite threatened and vulnerable to falling into poverty.
What do economists think about the trend of people eating up their savings? For more details, watch the dialogue between Anneke Wijaya and University of Indonesia economist, Ninasapti Triaswati, in Power Lunch, CNBC Indonesia (Wednesday, 20/12/2023).
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