Indonesia’s middle class faces increasing risk of poverty

Global Business

Indonesia’s strength as one of southeast Asia’s best performing economies is its rising middle-class, but that’s now under threat. The World Bank reported that poverty reduction in Indonesia has slowed, which could send millions back to poverty. CCTV America’s Andy Saputra reports.

Indonesia's middle class faces increasing risk of poverty

Indonesia's middle class faces increasing risk of poverty

Indonesia's strength as one of southeast Asia's best performing economies is its rising middle-class, but that's now under threat. The World Bank reported that poverty reduction in Indonesia has slowed, which could send millions back to poverty. CCTV America's Andy Saputra reports.

“There is a large number of Indonesians that are not poor, yet are very vulnerable to poverty. There are 40 million Indonesians who are poor today who were not poor last year. There are 60 million Indonesians who, in any given year, face a probability of 1 in 3 in becoming poor,” said Rodrigo Chavez, Indonesia country director at the World Bank.

The findings also show that Indonesia’s poverty reduction rate is at its lowest in the past decade.

Indonesia’s newly formed middle-class will be the most vulnerable to economic blows.