WORLD BANK’S PROJECTION SHOULD NOT BE OVERINTERPRETED, SAYS ECONOMIC AFFAIRS MINISTER
In its April 2026 East Asia and Pacific Economic Update, the World Bank lowered Indonesia’s growth forecast to 4.7 per cent, down from 4.8 per cent it projected in October last year, citing external pressures including higher global oil prices and increased investor caution in international financial markets.
However, the World Bank also noted that some of the pressures could be cushioned by commodity revenues and government-led investment initiatives, adding that Indonesia still has economic buffers including commodity exports that could help absorb the short-term impact of higher energy costs, according to local news outlet Tempo.
Unlike Purbaya, Airlangga described the downgrade as part of a broader global phenomenon, noting that many countries are experiencing similar revisions due to geopolitical tensions and wars weighing on the global economy.
“If we look at the figure, it is still above the global average growth, which is around 3.4 per cent,” he said on Thursday, adding that this reflects strong economic fundamentals.
Airlangga cautioned against overinterpreting the World Bank’s projection, saying that such forecasts are based on assumptions and may not fully reflect conditions on the ground.
“They have their own estimates but in many cases, our actual results have been better than their predictions, ” he said.
In 2025, Indonesia’s economy grew by 5.11 per cent year-on-year, exceeding the World Bank’s projection of 5 per cent, according to IDN Financials.
He also said that the Indonesian government will not interfere with or intervene in projections made by international institutions. “We don’t need to intervene,” he said.
