JAKARTA - Finance Minister Purbaya Yudhi Sadewa responded to the revision of Indonesia's economic growth projection by the World Bank which lowered the estimate to 4.7 percent in 2026 from the previous 4.8 percent.
Purbaya assessed that the calculation was not accurate and was optimistic that Indonesia's economic performance would remain solid, even in the first quarter of 2026, it is estimated to be able to grow above 5.5 percent.
According to him, if the average growth is only 4.7 percent, then the assumption seems to reflect a sharp decline in the following period.
"In the first quarter (2026) alone, it may be 5.5-5.6 or more. This means that the World Bank calculates that we want a recession, going down once after that if the average is 4.6. I think the World Bank has miscalculated," he told the media, Thursday, April 9.
He argued that the World Bank's projection was influenced by the surge in global oil prices.
Purbaya believes that if energy prices stabilize in the near future, the institution will likely revise its projections again.
"I am sure the World Bank calculated it because of the impact of high oil prices. If a month from now the oil price drops to a normal level again, the World Bank will definitely change its predictions," he said.
However, he regretted the impact of the revision which was considered to trigger negative sentiments in the domestic market.
Purbaya even assessed that this step has the potential to affect investors' perceptions of the national economic conditions.
"But he (the world bank) has committed a great sin. He has created a negative sentiment for us. Later I will wait for an apology from them when the oil price returns to normal levels. If he changes his economic prediction again," he explained.
On the other hand, he said the government ensured that various priority programs continued to run well, and that the strengthening of the financial system and investment climate improvement efforts continued to be carried out to maintain the momentum of economic growth.
"I think with such efforts, the economic growth will turn around," he said.
Purbaya also emphasized that the government would optimize all instruments to drive the national economy.
He expressed his confidence that with the right strategy, Indonesia's economic performance can continue to improve in the future.
"I will optimize all the economic engines that are here. Maybe the World Bank is right. But I don't know, what is clear is that in my numbers I am improving. And we will continue to take care of it. Maybe the World Bank doesn't know my Asian moves," he said.
Meanwhile, in the latest report, the East Asia & Pacific Economic Update, April 2026, the World Bank projects Indonesia's economic growth to slow to 4.7 percent.
This decline is in line with the trend of slowing in the East Asia and Pacific region (outside China) which is estimated to grow 4.1 percent, lower than the previous projection of 4.4 percent.
The World Bank said the slowdown was influenced by the pressure of rising oil prices and increased risk-off sentiment, although some of the impact was offset by commodity revenues and government-driven investment.
"Indonesia's growth is projected to slow to 4.7 percent, as pressure from rising oil prices and risk-off sentiment is only partially offset by commodity revenues and state-led investment initiatives," the report said.
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