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🇮🇩 Indonesia /Economy & Trade

Finance Minister: World Bank Apologizes for Underestimating Indonesia's Economic Growth

From Tempo · (2d ago) Indonesian Positive tone

Translated from Indonesian, summarized and contextualized by DistantNews.

TLDR

  • Indonesian Finance Minister Purbaya Yudhi Sadewa stated that the World Bank has apologized for its overly low projection of Indonesia's economic growth.
  • The World Bank had projected Indonesia's economy to slow to 4.7% in 2026, a revision from its previous forecast of 4.8%.
  • Minister Purbaya believes the projection is inaccurate, citing significant government reforms in tax, customs, and other institutions as reasons for optimism about higher economic growth.

Finance Minister Purbaya Yudhi Sadewa revealed that the World Bank has formally apologized for its recent projection of Indonesia's economic growth, which the minister deemed excessively pessimistic. This acknowledgment came during a meeting between Minister Purbaya and World Bank representatives in the United States last week.

The World Bank's April 2026 East Asia and Pacific Economic Update had forecast a slowdown in Indonesia's economic growth to 4.7% for 2026, a slight decrease from its earlier prediction of 4.8%. Minister Purbaya, however, expressed confidence that this forecast is misguided. He stated that instead of requesting a revision, he intends to demonstrate the inaccuracy of the World Bank's assessment.

There are those who say our growth is only 4.7 percent, that's the World Bank, right. When we met there, they apologized.

— Purbaya Yudhi SadewaMinister of Finance Purbaya Yudhi Sadewa on the World Bank's apology regarding its economic growth projection for Indonesia.

Minister Purbaya conveyed his optimism directly to World Bank officials, asserting that Indonesia's economic prospects are brighter than projected. This confidence stems from the substantial reforms undertaken by the government across key institutions, including the Directorate General of Taxation and the Directorate General of Customs and Excise. These reforms, implemented prior to recent global economic turbulence, are expected to bolster economic performance.

From Indonesia's perspective, this interaction underscores our nation's growing economic resilience and the effectiveness of our reform agenda. While international institutions provide valuable analysis, we are confident in our own trajectory. The World Bank's apology, though perhaps a small gesture, signifies a recognition of Indonesia's dynamic economic landscape and the positive impact of our proactive policies. We are committed to proving that our economic growth will not only meet but exceed these conservative international forecasts, driven by our own internal strengths and strategic reforms.

I just want to prove that the projection is wrong.

— Purbaya Yudhi SadewaMinister Purbaya's stance on the World Bank's economic growth forecast for Indonesia.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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