Indonesia, Officially An Upper-middle Income Country

Indonesia saw its GNI per capita rise to US$4,050 (S$5,648) last year, surpassing the income threshold for upper-middle income, from US$3,840 in 2018.

According to the World Bank's latest country classifications by income level, Indonesia is now officially an upper-middle income country, an upgrade from its previous status as lower-middle income. Upper-middle income status categorises countries with a GNI per capita of US$4,046 to US$12,535.

The classifications are based on gross national income (GNI) per capita. The World Bank uses the indicator to decide whether a country may use the bank's facilities, such as loan pricing.

The middle-class group has grown from 7 per cent to 20 per cent of the population, with 52 million Indonesians currently belonging to that group, according to the World Bank's Aspiring Indonesia-Expanding the Middle Class report.

The Finance Ministry said in a statement that the government will continue to push for structural reforms to boost competitiveness, improve industry capabilities and reduce the current account deficit to empower the economy.

The coronavirus pandemic has upended the country's economy this year, with the government expecting full-year growth to reach only 1 per cent under a baseline scenario or for the economy to contract 0.4 per cent under a worst-case scenario.

The World Bank projects zero per cent growth for South-east Asia's biggest economy this year.