5-7-2023 (JAKARTA) Government efforts to accelerate the national economic recovery post-Covid-19 pandemic in Indonesia have yielded positive results. The per capita income level has increased, allowing Indonesia to re-enter the group of upper-middle-income countries. According to the World Bank Group’s country classifications by income level for FY24, the gross national income (GNI) per capita reached $4,580 USD in 2022, equivalent to around Rp 68.7 million. This value represents a 9.8% increase from the previous year, which was $4,170 USD or approximately Rp 62.55 million. With this per capita GNI, Indonesia has once again entered the category of upper-middle-income countries. In this period, the threshold for upper-middle-income countries is set at $4,466 USD.
“El Salvador, Indonesia, as well as the West Bank and Gaza Strip, are all very close to the upper-middle-income threshold in 2021, so with relatively modest economic growth in 2022, these countries have sufficiently entered this category,” wrote the World Bank, as quoted on Wednesday (April 8, 2023). Indonesia’s promotion to a higher income level is a result of the continued trend of national economic recovery. The World Bank highlights Indonesia’s success in maintaining the momentum of economic recovery post-pandemic, resulting in an economic growth rate of 5.3% in 2022. It is worth noting that the World Bank releases country classifications based on per capita income every year. In the release typically published on July 1st, countries are categorized as low income, lower middle income, upper middle income, and high income.
For the period July 1, 2023, to June 30, 2024, the income categories are as follows: Low income, GNI per capita less than $1,135 USD. Lower middle income, GNI per capita between $1,136 USD and $4,465 USD. Upper middle income, GNI per capita between $4,465 USD and $13,485 USD. High income, GNI per capita above $13,845 USD. Indonesia itself was previously classified as an upper-middle-income country in 2019, with a per capita income of $4,050 USD. However, Indonesia was displaced from this group when the Covid-19 pandemic hit, with per capita income declining to $3,870 USD.
Rapid Economic Recovery With its re-entry into the upper-middle-income category in 2022, President Joko Widodo believes that Indonesia has achieved a rapid economic recovery. Amid global uncertainties, Indonesia has recorded national economic growth in the range of 5% for six consecutive quarters. “This is a rapid recovery process after we descended to the lower-middle-income group in 2020 due to the pandemic,” said President Jokowi during the opening of the Cabinet Plenary Session at the State Palace in Jakarta on Monday (July 3, 2023).
