Jakarta city

RI Grades Up Become Middle-Up and High-Income Countries

The Ministry of Finance claims the World Bank raised Indonesia's ranking from a middle-income country to an upper middle income country.

Status as a middle to upper-income country was given amid the threat of recession due to the corona pandemic. The status is valid as of July 1 2020.

"A proud achievement. The increase in status was given based on the latest World Bank assessment. Indonesia's GNI per capita in 2019 rose to US $ 4,050 from the previous position, which was US $ 3,840," explained Head of the Ministry of Communications and Information Services Ministry of Finance Rahayu Puspasari.

It is known, the World Bank classifies countries based on GNI per capita in four categories. Namely, low income (US $ 1,035), lower middle income (US $ 1,036-US $ 4,045), upper middle income (US $ 4,046-US $ 12,535), and high income (above US $ 12,535).

According to Rahayu, the classification of this category is commonly used internally by the World Bank. However, it is widely referred by international institutions and organizations. The World Bank uses this classification as one of the factors to determine a country is eligible to use facilities and products, including loan pricing.

He considered the rise in the status of Indonesia was proof of economic resilience and sustainable growth that had always been maintained in recent years. Increasing the status of RI as a middle to upper income country will further strengthen the trust and perception of investors, trading partners, bilateral partners, and development partners for Indonesia's economic security.

It is hoped that this increase in status can also increase investment, improve the performance of the transaction balance, encourage economic competitiveness, and strengthen financial support.

"The increase in status is a strategic stage and a solid foundation towards developing Indonesia in 2045 to become the fifth largest economy in the world," Rahayu said.

Source: https://bit.ly/2ZvEOGZ