Indonesia Eyes Re-entry into Upper-Middle-Income Bracket by June 2024: Bappenas
Jakarta, The Gulf Observer: The National Development Planning Agency (Bappenas) of Indonesia has voiced optimism regarding Indonesia’s potential reclassification as an upper-middle-income country by June 2024, signaling significant economic progress amidst challenges posed by the COVID-19 pandemic.
Dewi Virgiyanti, Bappenas’ Acting Deputy for Regional Development, announced the encouraging possibility during a statement on Thursday. Virgiyanti highlighted Indonesia’s previous classification as an upper-middle-income country, which was downgraded due to pandemic-induced setbacks, resulting in a shift to lower-middle-income status.
The World Bank’s gross national income (GNI) threshold for upper-middle-income economies stands at US$4,466, with Indonesia’s GNI recorded at US$4,580 in 2022, indicating its proximity to the upper-middle-income bracket.
Virgiyanti elaborated on the challenges posed by the middle-income trap, emphasizing the need for Indonesia to overcome barriers to further economic advancement. To accelerate progress towards becoming a developed nation, she stressed the importance of identifying new sources of economic growth swiftly.
Highlighting the ambitious goal of achieving developed nation status by 2045, Virgiyanti underscored the necessity of sustaining annual economic growth rates between 6.0 to 7.0 percent. She emphasized the imperative for accelerated economic expansion, stating that Indonesia’s current growth rate of approximately 5.1–5.4 percent must increase exponentially to meet development targets.
Virgiyanti outlined the strategic approach outlined in the 2025–2045 National Long-Term Development Plan (RPJPN), aiming to propel Indonesia towards its vision of a “Golden Indonesia 2045.” This comprehensive plan encompasses transformative initiatives aimed at fostering sustainable growth and advancing socio-economic development over the next two decades.
As Indonesia charts its trajectory towards re-entering the upper-middle-income bracket and realizing its long-term development aspirations, Bappenas remains committed to driving strategic reforms and initiatives to propel the nation towards a prosperous and resilient future.
