Only A Year, Indonesia Downcast Aka Return To Origin To Become Middle Income Country

Illustration. (Photo: Unsplash)

JAKARTA - Minister of National Development Planning / Head of Bappenas Suharso Monoarfa said that Indonesia's status as an upper middle income country must now decline to become a middle income country due to the impact of the COVID-19 pandemic.

"The main thing is because economic growth must contract by minus 2.07 percent throughout 2020," he said in a virtual press conference, Tuesday, February 9.

Suharso added, the title as the upper middle income country was only pinned in 2019. This status is also a sign that Indonesia is ready to take off towards a developed country with a high income country.

To note, in 2019 Indonesia has a gross domestic product (GDP) per capita of US $ 4,050. This figure is up from the previous record of 3,840 US dollars.

Previously last week, the Central Statistics Agency (BPS) reported that the Indonesian economy in 2020 as measured by GDP at current prices reached IDR 15,434 trillion and GDP per capita reached IDR 56.9 million or equivalent to US $ 3,911.

For information, there are four categories of state income based on the classification from the World Bank. First, lower income country GDP per capita is below US $ 1,026 per year.

Second, a lower middle income country with a GDP per capita of US $ 1,026-3,995 per year. Third, an upper middle income country with a GDP per capita of US $ 3,996-12,375.

And finally, high income countries or commonly referred to as developed countries with a GDP per capita above 12,375 US dollars per year.