Purbaya Says World Bank Misreads Indonesia's Growth Outlook
Reporter
April 9, 2026 | 02:19 pm
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa has pushed back against the World Bank’s decision to lower Indonesia’s 2026 economic growth forecast from 4.8 percent to 4.7 percent, saying the institution’s assessment does not fully capture the government’s strategy to support the economy.
Speaking in Jakarta on Thursday, Purbaya said the World Bank’s calculation of Indonesia’s economic outlook was “less precise,” and stressed that the government is focused on ensuring policies and financial conditions remain supportive of growth.
“What matters for us is making sure that the programs that are genuinely beneficial move forward, that the financial system is ready to support economic growth, and that the investment climate improves,” Purbaya said.
He expressed confidence that Indonesia’s growth would strengthen again as the government continues efforts to maintain stability and encourage investment. He also suggested the World Bank’s downgraded forecast was largely influenced by elevated global oil prices, which he said could change if prices return to normal.
“I think with efforts like that, growth will rebound. I believe the World Bank made that calculation because of the impact of high oil prices. If oil prices fall back to normal levels within the next month, the World Bank will definitely revise its forecast again,” he said.
Purbaya, who also serves as the state treasurer, added that the World Bank may not have fully factored in the economic strategies being pursued by President Prabowo Subianto’s administration.
“Maybe the World Bank doesn’t yet know my secret moves, or Mr. Prabowo’s secret moves,” he said, referring jokingly to the government’s economic strategy.
In its April 2026 edition of the East Asia and Pacific Economic Update, the World Bank lowered Indonesia’s 2026 growth projection to 4.7 percent, down from the 4.8 percent estimate published in October 2025.
The report said the weaker outlook was driven by external pressures, particularly rising global oil prices and growing investor caution in international financial markets, often described as a “risk-off” sentiment.
However, the World Bank noted that some of the pressure could be cushioned by commodity revenues and government-led investment initiatives.
It also said Indonesia still has economic buffers, including commodity exports, which could help absorb the short-term impact of higher energy costs.
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