Purbaya: World Bank's Projection Creates Negative Sentiment

Finance Minister Purbaya Yudhi Sadewa stated that the World Bank will revise its projection again after releasing its latest forecast of Indonesia’s 2026 economic growth slowing to 4.7 per cent. He believes the World Bank is mistaken because the projection creates negative sentiment towards Indonesia.

The World Bank forecasts a decline in Indonesia’s economic growth due to surging global oil prices. When prices return to normal, Purbaya is confident the World Bank will adjust its prediction. “But it has already committed a grave error by causing negative sentiment for us,” he said at the Ministry of Finance office in Jakarta on Thursday, 9 April 2026.

The State Treasurer also plans to demand an apology from the World Bank if oil prices ease and they revise Indonesia’s economic growth projection again. “I’ll wait for their apology when oil prices return to normal levels,” he stated.

In its publication titled East Asia and Pacific (EAP) Economic Update April 2026 edition, the World Bank slashed its projection for Indonesia’s 2026 economic growth to just 4.7 per cent of gross domestic product (GDP). Previously, in October 2026, the World Bank had predicted 4.8 per cent growth against GDP.

The World Bank explained that the growth slowdown is due to obstacles from rising world oil prices and investor risk aversion sentiment. This figure is also lower than Indonesia’s economic growth last year, which reached 5.1 per cent. Meanwhile, for 2027, the World Bank predicts Indonesia’s economic growth will be higher, reaching 5.2 per cent.