Purbaya Responds to World Bank's Cut in Indonesia's Economic Growth Projection - BCA Sekuritas

Finance Minister Purbaya Yudhi Sadewa has responded to the World Bank’s projection that cuts Indonesia’s economic growth from 4.8 percent to 4.7 percent. According to him, the World Bank’s calculation in viewing the Indonesian economy is not entirely accurate. In this regard, Purbaya is more focused on implementing several strategies to boost national economic growth. “What is important for us is to ensure that the programmes that are indeed good, the financial system is ready to support economic growth, and the investment climate improves,” said Purbaya when met in Jakarta on Thursday. He believes that Indonesia’s economic growth will strengthen again in line with the government’s efforts to maintain stability and encourage investment. According to him, if global oil prices return to normal, the World Bank will change its prediction again. “I think with such efforts, economic growth will turn around later. I am sure the World Bank calculated that because of the impact of high oil prices. If in a month from now oil prices drop back to normal levels, the World Bank will definitely change its prediction,” he stated. The state treasurer also mentioned that the World Bank, in assessing economic growth, has not fully considered the Prabowo Subianto administration’s strategies in maintaining economic growth. “Perhaps the World Bank does not yet know my secret moves (economic strategies) and Mr Prabowo’s secret moves,” he explained. Meanwhile, the World Bank in its April 2026 East Asia and Pacific Economic Update report lowered the projection for Indonesia’s economic growth to 4.7 percent in 2026, lower than the October 2025 projection of 4.8 percent. In the report, the slowdown is influenced by external pressures, particularly the rise in global oil prices and increasing risk-off sentiment among investors in international financial markets. The World Bank also noted that the impact of the pressures can partly be offset by commodity revenues and government-driven investment initiatives. Indonesia is assessed to still have economic buffers, including from commodity exports, which can cushion the impact of rising energy costs in the short term.