Airlangga and Purbaya United Against World Bank, Confident in Indonesia's Resilient Economy
Airlangga & Purbaya United Against World Bank, Confident in Indonesia’s Resilient Economy
Jakarta, CNBC Indonesia - The World Bank projects Indonesia’s economic growth to slow to 4.7% in 2026. This figure is lower than the previous projection of 4.8% and the 2026 state budget target.
Quoted from the East Asia and Pacific Economic Update April 2026 edition released a few days ago (9/4/2026), the World Bank states that growth in the East Asia and Pacific (EAP) region will slow in 2026 due to external shocks, including the war in the Middle East and rising fuel prices triggered by those tensions.
Coordinating Minister for the Economy Airlangga Hartarto understands that the war situation and uncertainties have led the World Bank to lower growth projections for various countries, including Indonesia.
However, he remains optimistic that Indonesia’s economy will still thrive in 2026. This statement contrasts with the World Bank’s forecast, which sees Indonesia’s economy slowing. Airlangga is optimistic that Indonesia’s economy in 2026 will grow at the same level or higher than 5.4%.
“For the first quarter, we are optimistic it will be greater than or equal to 5.5%. Then, by the end of the year, greater than or equal to 5.4%, in line with the state budget estimate,” he said, quoted on Friday (8/4/2026).
However, he does not rule out the possibility of adjustments, depending on global dynamics.
“All of this still depends on whether the geopolitical situation remains stable or not. Currently, we are in a state of war, and in two weeks, there will certainly be dynamics. So, we continue to adjust to the existing dynamics,” Airlangga emphasised.
Meanwhile, Finance Minister Purbaya Yudhi Sadewa responded more sharply to the World Bank’s projection. Purbaya believes the World Bank may have miscalculated. For the first quarter of 2026 alone, Indonesia’s economic growth is predicted to reach 5.5%.
“The first trimester could be 5.5%, 5.6% or more. That means the World Bank is calculating that we are heading for a recession, dropping very low, and then averaging 4.6%. I think the World Bank miscalculated,” Purbaya told reporters at his office in Central Jakarta on Thursday (9/4/2026).
According to Purbaya, the World Bank’s projection is influenced by global oil price increases and the war in the Middle East. He is confident that the World Bank’s projection will be revised again if the situation returns to normal.
Nevertheless, Purbaya considers the World Bank to have committed a grave sin by creating negative sentiment for Indonesia.
“If in a month from now the oil price drops back to normal levels, the World Bank will surely change its prediction. But it has already committed a grave sin; it has caused negative sentiment towards us. I will wait for their apology when the oil price returns to normal levels, if they change their economic prediction again,” Purbaya emphasised.