"It’s really hard to find a job these days. I’ve applied to 30 openings, and nothing’s come through," a friend said as we shared coffee at a small roadside coffee stall (locally called a warkop) on a tranquil afternoon. My friend ordered a black coffee, and so did I. But don’t picture it as anything like an Americano or a Long Black from a fancy cafe—because it was definitely not that. What we ordered was a black coffee that came in a packet with a ship logo on it, costing just five thousand rupiah per cup. (Though, to my annoyance, the price has gone up now.) Oh, and technically, I shouldn't even call it "real" coffee, because it’s just powdered instant coffee flavored to taste like the real thing.
That afternoon, the rain poured down heavily. My friend, lost in his thoughts, decided to leave early. "My wife’s waiting for me at home," he explained. He slipped into his yellow raincoat, which—pardon the detail—had a small hole near the back, and rode off on his motorcycle, a ten-year-old model he had taken care of meticulously. Even so, it was showing its age lately, often "begging for repairs." He had been complaining a lot about its declining performance recently.
The sound of my friend’s motorcycle gradually faded, drowned out by the heavy rain. I remained seated, waiting for the downpour to ease, staring at my cup, now holding nothing but coffee grounds. I was the only customer left at the warkop, where rain splashes crept into the open-air space. My thoughts wandered, reflecting on my friend’s predicament. His struggle was not unique, after all. The number of people facing similar hardships was undoubtedly growing by the day.
Take a look at LinkedIn, for instance. How many profiles display the “open to work” badge? There are plenty of job openings, but the number of applicants far outstrips them. People are scrambling to polish their resumes and enhance their LinkedIn profiles. Many post comments on various updates—ranging from personal opinions to simple thank-you notes—hoping to catch the attention of recruiters.
During this so-called "tech winter," layoffs have hit at an alarming scale. Many who were affected were caught off guard by the sudden reality. “With trembling hands, I opened the email. I never imagined that I’d have to leave the job I dreamed of just two years ago,” reads one of the viral posts that gathered numerous likes and comments. These are members of the middle class, now caught in the throes of unexpected hardship.
Falling from the Middle Class
My friend, and myself as well, are classified as what is often referred to as the middle class. There are many definitions, but I refer to the general one used by the World Bank (2019): individuals who enjoy economic security, free from the fear of falling into poverty, and, as a result, allocate their income for discretionary spending rather than merely covering basic needs.
It sounds pretty sophisticated, right? Economic security is relatively stable, the risk of falling into poverty is low, and they enjoy a variety of consumption choices. My friend, myself, and, likely, you, dear reader, benefit from this sense of financial security. However, lately, that sense of comfort has been slowly slipping away.
According to the World Bank, the middle class can be identified as those whose spending ranges from 3.5 to 17 times the Poverty Line (PL). Unfortunately, in the last five years, many within this group have been gradually sliding down the socioeconomic ladder, with the total number reaching a staggering 8.7 million people. What an alarming figure!
They have fallen into what is known as the aspiring middle class, defined as those whose spending ranges from 1.5 to 3.5 times the Poverty Line (PL). The question is: how did the middle class shrink so drastically, with 8.7 million people slipping down the socioeconomic ladder?
I can’t imagine what it must be like to be one of them. Many of them were likely victims of layoffs. Their lives, already constrained by the slow growth of real wages, were suddenly upended by the loss of their primary source of income. This is undeniably a heartbreaking and distressing situation.
A Frustrated Class
Don’t imagine that the struggles of the middle class are the same as those of the poor or near-poor, let alone the wealthy. It’s a completely different experience! To better illustrate this, let’s take a look at Joni’s story:
Joni is a professional living on the outskirts of Jakarta, earning a net income of 10 million rupiah a month. He is well-educated, financially stable, and has a small family. A significant portion of his spending goes toward secondary and tertiary goods. On weekends, Joni takes his family on outings, dines at restaurants, drinks coffee three times a week, and frequently orders food online.
Then, unexpectedly, Joni gets laid off. The sudden loss of income leaves him frustrated. For months, he searches for a new job, but without success. Eventually, he is forced to switch to a new line of work, earning far less than before. His life takes a complete 180-degree turn. Now, all his spending is redirected toward basic needs, and he restrains himself from indulging in the luxuries he once enjoyed when his finances were secure.
A popular term among the middle class for such situations is “mantab”—short for makan tabungan, or "eating into savings." Joni is left with no choice but to dip into his savings to cover his daily needs. Objectively, Joni hasn’t fallen into poverty—he might still technically belong to the middle class or perhaps be among the 8.7 million people who slid down the ladder. Either way, subjectively, he is suffering.
Adjusting one’s lifestyle is no easy feat. That’s because an individual’s place in the social class hierarchy reflects more than just economic standing; it also embodies status, culture, and taste (Bourdieu, 1984). This is precisely why the decline in Joni’s income, which had supported his lifestyle, leads to deep frustration.
In these difficult times, the middle class has become the group most affected by mental health issues, with 49% of them experiencing mental distress. According to a Kompas analysis (August 2024), these mental health struggles are driven by a decline in formal employment absorption, layoffs, and rising open unemployment. Many are going through what Joni experienced.
So, why does the middle class exhibit greater mental vulnerability? As discussed earlier, it boils down to matters of taste and lifestyle—both shaped by an individual’s position in the social class hierarchy. The tastes and lifestyle of the middle class are distinct from those of the lower classes. Their sense of a “minimum standard” lifestyle is shaped by perception, built upon their personal preferences and consumption habits.
Taste is not something that can be easily altered. It develops over a lifetime through one’s interactions, friendships, education, and the values absorbed along the way. When people experience extreme changes—such as a drop in social class—it creates a profound shock that unsettles those in the middle class. This mental distress is not just psychological but deeply sociological in nature.
This is why the suffering of the middle class cannot be equated with that of the poor. The perception of standards varies between the two: what the poor may consider adequate, the middle class might see as lacking. Both groups require different approaches to address their needs and challenges.
A Squeezed Class
Let’s return to my conversation at the warkop with my friend a while ago. One of his complaints stuck with me:
“The poor get social assistance, the rich are living comfortably—it's us in the middle who have it the hardest. And they keep taxing us too!”
I couldn’t agree with his statement, though, as a good listener, I knew his words were purely emotional. A venting session should not turn into a debate.
This sentiment is quite common among the middle class, at least from my experience. Many believe that the government pays little to no attention to them. They feel they receive no incentives, yet are increasingly burdened by taxes. In their view, the state is absent when it comes to supporting the middle class. However, it is fundamentally wrong to assume that poverty is "easy" or desirable—there is nothing enjoyable about being poor.
The frustration is understandable; I feel it too. Yet, there is a perception that needs to be clarified. What we all need to recognize is that the middle class is, in fact, expected to be the “pillar” supporting the lower classes. This creates a conceptual difference in the way the state engages with the middle class compared to how it supports the poor and the near-poor.
The state’s role for the poor is to elevate their socio-economic standing. The focus is on improving their quality of life and helping them escape poverty. Policy interventions like subsidies, social assistance, and the strengthening of social safety nets are designed to enable the poor to meet their primary needs. The goal is simple: ensuring that their basic needs are met.
Meanwhile, the state's role for the middle class is different: it is to sustain and encourage their consumption. The middle class, after all, serves as a consumer class, and consumption is ingrained in their lifestyle.
The decline of the middle class corresponds to a drop in their share of total household consumption. In 2018, the middle class accounted for 45.6% of total consumption, but by 2023, this share had fallen to 40.3%. This decrease coincides with an increase in food expenditure, from 36.6% in 2014 to 41.3% in 2023 (LPEM FEB UI, 2024). This shift indicates a gradual reduction in spending on secondary and tertiary goods.
In other words, the middle class is now allocating more of their budget toward essentials, leaving less room for discretionary spending, a sign that their financial condition has taken a hit.
The decline in the purchasing power of the middle class is a serious economic blow. Sustainable economic growth relies heavily on consumption, which, in this case, is significantly driven by the middle class. When the middle class tightens its spending—focusing more on basic needs—this growth engine loses momentum. Like a machine, the economy begins to slow down.
Therefore, the state must step in to sustain and boost the consumption activity of the middle class. The key lies in increasing their purchasing power so they can continue spending. In the short term, policy packages offering various incentives are necessary. However, more importantly, the creation of formal-sector jobs is essential. This would absorb their talent and, in turn, provide long-term economic security.
The middle class is highly dependent on the formal sector. Though by 2023, approximately 40% of the middle class was working in the informal sector (LPEM FEB UI, 2024), the formal sector remains attractive due to its higher income potential. This sector demands advanced skills, which often require a higher level of education—a characteristic that the middle class possesses to a much greater extent than lower-income groups.
Take Joni, for example. How frustrating would it be for someone like him if his advanced skills didn’t align with the wages he earned? The frustration intensifies when his talents are wasted, as he’s forced to keep working without many viable options. This is precisely where the state’s presence is crucial, to provide economic security for people like Joni.
However, the current reality is quite the opposite—the state seems to squeeze individuals like Joni with taxes and other burdens, offering little in return. Without appropriate policy responses, this continued pressure threatens not only individual well-being but also the broader economic stability that relies on the strength of the middle class.
A Class Must Not Suffer
“Well then, why don’t you just become poor?” I quipped mid-conversation, as my friend kept venting. He was sipping his hot coffee when my remark caught him off guard, making him cough. “Are you crazy?!” he exclaimed, wiping the spilled coffee off his pants. Of course, my intention was to remind him not to compare himself with the poor. “We’re not poor,” I replied firmly.
The suffering of the middle class today is real. Addressing it carries two important implications.
First, and most importantly, it would lift them out of their distress. Less suffering means less frustration, which in turn helps restore productivity. As their consumer spirit returns, the middle class can regain its vitality and sense of purpose.
Second, increased consumption helps restart the wheels of the economy. As demand rises, industries can thrive, and production chains run smoothly. The consumption of the middle class is like oil in an engine—without it, the engine of growth stalls. That is why the state must not allow the middle class to suffer.
The happiness of the middle class is one of the keys to economic growth. To sustain this, they must be able to continue spending: filling cafes with coffee orders, going on recreational trips, staying at hotels, traveling to Bali for some healing time, and indulging in activities beyond mere survival. After all, this is the essence of the middle class—they live to consume beyond basic necessities.
Keeping the middle class financially engaged and emotionally content is not just about individual well-being; it’s a strategy to fuel economic growth. Their ability to spend freely drives demand, revitalizes businesses, and strengthens the economy. This is why their welfare should be a priority—not just for themselves, but for the entire nation.
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