World Bank: Indonesia is Now Upper Middle Country
Date 2 Juli 2020
The World Bank has upgraded Indonesia’s status to ‘upper-middle country’ from its previous status of ‘lower-middle country’ based on the institution’s latest country classifications by income level published on Wednesday.
The classifications, which are updated annually every 1 July, are divided into four categories based on gross national income (GNI) per capita.
They are low income (USD1.035), lower middle income (USD1.036-USD4,045), upper middle income (USD4.046-USD12.535) and high income (>USD12.535).
The World Bank uses this classification as a factor to determine whether a country may use the bank’s facilities, such as loan pricing.
For the record, Indonesia’s GNI per capita rose to US$4,050 in 2019 from the previous position of US$3,840 in 2018.
The upgrade of Indonesia’s status has proven that the country’s economic resilience and sustainable growth has been well-maintained in recent years.
The new status is also expected to further strengthen trust and perception from investors, trading partners, bilateral partners and development partners for the economy.
Furthermore, the improved status is also expected to boost investment, improve current account performance, encourage economic competitiveness and strengthen financial support. (Ministry of Finance / EN)
Translated by: Estu Widyamurti
Reviewed by: M. Ersan Pamungkas