Economists Request Priority for Labor-Intensive Incentives to Protect the Middle Class
The government is encouraged to prioritize providing incentives to labor-intensive business sectors to maintain the purchasing power of the middle class who are facing pressure due to slowing real income and structural challenges in the domestic economy.
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Chief Economist of PT Permata Bank Tbk Josua Pardede assesses that state budget support must be directed strategically to business sectors that are capable of absorbing large numbers of workers in order to protect the welfare of the wider community.
People's real income growth is currently recorded as slowing to below five percent, even though this achievement was able to be above five percent before the pandemic hit the national economy.
The direction of investment which increasingly dominates capital-intensive sectors and the service sector is considered less than optimal in creating mass employment, so fiscal policy intervention is urgently needed at this time.
The government is reminded to prevent the decline in the social status of people from the middle class group so that they do not fall into the category of poor people amidst the dynamics of national growth.
National economic growth projections are predicted to remain resilient in the range of five point two to five point three percent with the inflation rate remaining stable at around three percent.