SURVIVING AMIDST VULNERABILITY: A STRATEGIC ANALYSIS OF THE INDONESIAN MIDDLE CLASS’S ADAPTATION TO ECONOMIC POLICY DYNAMICS

Abstract

This study aims to examine the adaptation strategies of the Indonesian middle class in response to economic policy dynamics through qualitative research using a systematic literature review (SLR) approach following the PRISMA method. Articles were analyzed bibliometrically and systematically
using VOSviewer and Publish or Perish. Co-occurrence analysis with keywords revealed three clusters: state and worker involvement in responding to crises through market mechanisms such as social
protection and the informal sector; the middle class’s precarious position on the brink of poverty; and the middle class’s strategies for coping with economic shocks. The study’s findings identified the middle class’s adaptation strategies in response to economic policies, including a shift toward the informal sector (gig economy) as a means for households to maintain daily liquidity amid the crisis; strengthening Micro, Small, and Medium Enterprises (MSMEs) to foster household economic self-reliance and resilience; social protection in the form of policy inclusivity needs to be enhanced to truly reach the middle class; education and human resource development as an absolute prerequisite for Indonesia’s quality, competitive, and adaptive progress toward Industry 4.0; and the emergence of rational consumption patterns through credit practices or asset pawnbroking to cover primary needs. It is hoped that the results of this study will broaden understanding and provide practical contributions to the design of more inclusive economic policies for the middle class.