Purbaya Says World Bank Misreads Indonesia\u2019s Growth Outlook<\/p>\n
Reporter<\/p>\n
April 9, 2026 | 02:19 pm<\/p>\n
TEMPO.CO, Jakarta - Finance Minister Purbaya Yudhi Sadewa has pushed\nback against the World Bank\u2019s decision to lower Indonesia\u2019s 2026\neconomic growth forecast from 4.8 percent to 4.7 percent, saying the\ninstitution\u2019s assessment does not fully capture the government\u2019s\nstrategy to support the economy.<\/p>\n
Speaking in Jakarta on Thursday, Purbaya said the World Bank\u2019s\ncalculation of Indonesia\u2019s economic outlook was \u201cless precise,\u201d and\nstressed that the government is focused on ensuring policies and\nfinancial conditions remain supportive of growth.<\/p>\n
\u201cWhat matters for us is making sure that the programs that are\ngenuinely beneficial move forward, that the financial system is ready to\nsupport economic growth, and that the investment climate improves,\u201d\nPurbaya said.<\/p>\n
He expressed confidence that Indonesia\u2019s growth would strengthen\nagain as the government continues efforts to maintain stability and\nencourage investment. He also suggested the World Bank\u2019s downgraded\nforecast was largely influenced by elevated global oil prices, which he\nsaid could change if prices return to normal.<\/p>\n
\u201cI think with efforts like that, growth will rebound. I believe the\nWorld Bank made that calculation because of the impact of high oil\nprices. If oil prices fall back to normal levels within the next month,\nthe World Bank will definitely revise its forecast again,\u201d he said.<\/p>\n
Purbaya, who also serves as the state treasurer, added that the World\nBank may not have fully factored in the economic strategies being\npursued by President Prabowo Subianto\u2019s administration.<\/p>\n
\u201cMaybe the World Bank doesn\u2019t yet know my secret moves, or\nMr.\u00a0Prabowo\u2019s secret moves,\u201d he said, referring jokingly to the\ngovernment\u2019s economic strategy.<\/p>\n
In its April 2026 edition of the East Asia and Pacific Economic\nUpdate, the World Bank lowered Indonesia\u2019s 2026 growth projection to 4.7\npercent, down from the 4.8 percent estimate published in October\n2025.<\/p>\n
The report said the weaker outlook was driven by external pressures,\nparticularly rising global oil prices and growing investor caution in\ninternational financial markets, often described as a \u201crisk-off\u201d\nsentiment.<\/p>\n
However, the World Bank noted that some of the pressure could be\ncushioned by commodity revenues and government-led investment\ninitiatives.<\/p>\n
It also said Indonesia still has economic buffers, including\ncommodity exports, which could help absorb the short-term impact of\nhigher energy costs.<\/p>\n
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