JakartaGlobe-Feb 8, 2022

Indonesia may soon rejoin the upper-middle income country again after continuing a robust recovery from the Covid-19 slump in the fourth quarter of 2021, a senior government official said on Monday. The largest economy in Southeast Asia expanded 5.02 percent in the three months compared to the same period last year, thanks to returning consumers’ appetite to spend and high prices in the global market for the county’s top export commodities like palm oil and coal, data from the Central Statistics Agency showed on Monday. Overall, the economy grew 3.69 percent in 2021, bouncing back from a 2.1 percent slump in 2020. That recovery was enough to boost Indonesia’s gross domestic product (GDP) per capita to Rp 62.2 million ($4,349.5) last year, increasing 8.1 percent from Rp 57.3 million in 2020. Febrio Kacaribu, the head of Fiscal Policy Agency (BKF) at the Finance Ministry, the country was expecting to reclaim upper-middle-income it first obtained in 2020. But, as the Covid-19 pandemic pressured the economy, World Bank reclassified Indonesia as a lower-middle income country last year. The World Bank will update the country classification on July 1, 2022. Read more at: https://jakartaglobe.id/business/indonesia-expects-upgrade-to-uppermiddle-income-country-status-again