09.10.2026, Indonesia seeks to protect the middle class from economic decline.

October 9, 2026

Economic

Jakarta (ANTARA) – The Indonesian Ministry of Coordination for the Empowerment of Communities develops several strategies to support the middle class, weakened by the economic crisis, and thus prevent more citizens from turning into financial insecurity.

” We must prevent those who have progressed from falling back into precariousness. We must guarantee the stability and progress of the middle class,” said Minister of Coordination for Community Empowerment Abdul Muhaimin Iskandar in Jakarta on Friday.

He stressed that the protection of this population requires special attention within the framework of the national community empowerment programme. The current economic situation highlights the urgent need to implement strategies that not only prevent the decline of the middle class, but also offer opportunities for social upswing, he noted.

According to Mr Iskandar, the emancipation of the middle class requires interventions that go beyond basic social protection. The government must ensure that this population has access to productive employment, financing, skills development, larger markets and opportunities for business creation.

These measures aim to stimulate tangible income growth, not simply to curb the deterioration of the economic situation.

One of the main objectives is to ensure that micro, small and medium-sized enterprises (SMEs) and creative economy actors receive appropriate incentives. The aim of this support is to avoid the stagnation of enterprises and to enable them, on the contrary, to increase their productive capacity, to expand their markets and to generate real economic growth.

Mr Iskandar stressed that public enterprises must play an active role in strengthening the entrepreneurial ecosystem. He suggested that these companies focus their support on developing partnerships, opening up markets, strengthening supply chains and creating an environment conducive to the growth of MSMEs.

Moreover, the strengthening of MSMEs must be accompanied by a genuine transition towards community economic autonomy.

For his part, MSMEs Minister Mom Abdurrahman said the government is currently implementing the capacity acceleration program for inclusive micro-enterprises (Laksmi). This initiative helps former social assistance recipients become independent entrepreneurs.

The programme has been tested with about 1,700 people and could benefit nearly 100,000 people.

This aid is not limited to access to financing. It includes changing attitudes, capacity building, certification, product development, marketing and business partnerships.

Abdurrahman stressed that this comprehensive approach is essential to ensure that citizens not only receive capital, but also acquire the practical skills needed to manage and develop their businesses sustainably.

In the creative economy sector, various initiatives – such as Creative Village, Creative Hub and Creative by Indonesia – are designed to generate measurable economic benefits, not just organize local events. These targeted benefits include job creation, income growth, product development and expanded market access.

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Modified: 2026-10-29T20:14:11+03:00