JAKARTA, city of the thousand malls (3), “Analysis of the Birth of the NEW Indonesian Middle Class”

JAKARTA, city of the thousand malls (3), “Analysis of the Birth of the NEW Indonesian Middle Class ”  ???? 

Yep ……. My goodness where on earth did the so called ” Birth of the NEW Indonesian Middle Class”  come from?

I intended to check this out….. although my eldest son said: “Mom, you do not have to believe all these  CIA or UN Reports…. ” ALAS …… better something than nothing…. It turned out I found the following data as mentioned from the internet :

GDP/capita from CIA world book
GDP Real Growth Rate   Source CIA World Factbook 2011

At first sight this looks marvelous, because this  diagram shows Indonesia’s PRODUCTION GROWTH,  a percentage increase during a few consecutive years  (except year 2009). Thus these data represent the growth in  “production” , meaning productive output  and are not dealing with anything of the HUMAN INPUT related to that Material Output. Therefore we have to look at the GDP/capita data, which accounts for at least about the number of people related to that output .

Percent poverty world map
World Poverty Map

However besides of that we have to take also in consideration the situation and condition in which that output is achieved (in comparison to other nations) to that purpose those clever people at the UNITED NATIONS DEVELOPMENT PROGRAM (UNDP) designed the HUMAN DEVELOPMENT INDEX.

Old method (before 2010 Report)

The HDI combined three dimensions last used in its 2009 Report:

HDI for various regions

HDI trends between 1975 and 2004

OECD  (black)
  (Central and) Eastern Europeand the CIS  (red)
  Latin America and theCaribbean  (orange)
  East Asia  (brown)
 Arab States    (green)
  South Asia   (blue)
  Sub-Saharan Africa         (pink)
This is the methodology used by the UNDP up until its 2011 report.
Human Development Index trends
Human Development Index trends

New method (2010 Report onwards)

Published on 4 November 2010 (and updated on 10 June 2011), starting with the 2010 Human Development Report the HDI combines three dimensions:

  • A long and healthy life: Life expectancy at birth
  • Education index: Mean years of schooling and Expected years of schooling
  • A decent standard of living: GNI per capita (PPP US$)

Further on I was fortunate that I found the

2013 UN Human Development Report     

The Rise of the South:
Human Progress in a Diverse World
Empowered lives.
Resilient nations.
in which among others the latest HDI Wordmap can be studied 

UN Human Development Report 2013
UN Human Development Report 2013

A map for HDI in the Indonesian provinces is also presented or :


HDI at Indonesian Provinces


The Rise of the South

CONCLUSIONS mentions a.o.

Partners in a new era

Many countries of the South have already demonstrated what can be done to ensure that human development proceeds in ways that are both productive and sustainable, but they have gone only part of the way. For the years ahead, the Report suggests five broad conclusions. (a.o):

Investments in human development are justified not only on moral grounds, but also because improvements in health, education and social welfare are key to success in a more competitive and dynamic world economy. In particular, these investments should target the poor—connecting them to markets and increasing their livelihood opportunities. Poverty is an injustice that can and should be remedied by determined action.

Good policymaking also requires greater focus on enhancing social capacities, not just individual capabilities. Individuals function within social institutions that can limit or enhance their development potential. Policies that change social norms that limit human potential, such as strictures against early marriages or dowry requirements, can open up additional opportunities for individuals to reach their full potential.

I hope that with the above mentioned references I have indications to my statement in my previous posting that there is indeed a shift in social well being to be observed in Indonesia. I begun my observation in looking at the people who visited various malls and found out that the conclusion that I made about the people was confirmed through the Human Development Index calculated by the UNDP during a sequence of years…. and

I think that the trends observed by UNDP about the human development may ultimately lead to  a  shift in economic potential of the Asian countries, or as is mentioned in Kishore Mahbubani’s book, even a power shift to Asia, if ……….


THE NEW ASIAN HEMISPHERE, The irresistable Shift of Global Power to The East

ASIA HEMISFER BARU DUNIA, Pergeseran kekuatan Global ke Timur yang Tak Terelakkan

Post Scriptum    I  am fully aware about the fact this story is far from complete and that I have to add many other factors togive somewhat more clarity to what I wanted to say, but for the time being i am satisfied with the story and will update it eventually astime goes by.

The NEW  Middleclass of Indonesia is young and educated.
The NEW Middleclass of Indonesia is young and educated.

NOTE: Picture shows workers relaxing after working hour, before taking the long trip home.




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