Indonesia's Poor Need Structural Reforms and Financial Discipline

Breaking the Cycle of Poverty

Indonesia continues to grapple with significant economic inequality, where limited access to quality education and fair wages keeps many trapped in poverty. Bhima Yudhistira, Executive Director of CELIOS, believes that while challenging, it's not impossible for the poor to rise to the middle class with the right support and policies.

Government's Role in Social Mobility

Yudhistira stresses that government intervention is crucial in creating an environment conducive to social mobility. This includes implementing progressive tax policies, maintaining or increasing education budgets, and ensuring that basic necessities like housing and clean water are affordable. "Mendesak reformasi struktural, kebijakan pajak harus tajam ke atas, anggaran pendidikan jangan dipangkas untuk MBG, memastikan fasilitas dasar seperti air dan perumahan terjangkau," Yudhistira emphasized.

Financial Discipline for Low-Income Households

For individuals living in poverty, Yudhistira advises against excessive consumption and warns about the dangers of falling into debt through peer-to-peer lending or getting caught up in online gambling. He stresses that any government assistance received should not be used for such purposes, as it could exacerbate their financial situation. "Orang miskin jika mendapat bansos jangan untuk judol dan ketagihan pinjol," he cautioned.

Path Forward

The path to reducing poverty and promoting social mobility in Indonesia requires a multi-faceted approach. It involves not just government policies but also a change in behavior among the poor. By combining structural reforms with financial discipline and support for education and basic infrastructure, Indonesia can make significant strides in addressing its economic inequality.