Mita Amalia Hapsari, Jakarta – In a recent meeting at the Presidential Palace in Jakarta, Anna Bjerde, Managing Director of Operations at The World Bank, lauded Indonesia's impressive economic performance and the success of various government initiatives.
"The World Bank acknowledges Indonesia's stable economic growth of over 5 percent and its low inflation rate. We particularly commend the country's growth rate of 5.11 percent and an inflation rate of 2.58 percent," reported Airlangga Hartarto, Chief Economic Affairs Minister, after the meeting on Thursday.
Despite the global economic growth rate hovering around 2.6 to 2.7 percent, Indonesia's growth remains strong at approximately 5 percent. The World Bank forecasts a global economic growth of 4.8 percent for the coming year.
Airlangga highlighted that the World Bank also recognized several government programs aimed at poverty reduction and infrastructure development, including irrigation projects for agriculture.
"The World Bank delegation, who recently visited Lombok in West Nusa Tenggara, noted the improvements in farmer incomes and the effectiveness of irrigation systems. These advancements have led to increased agricultural output and higher farmers' exchange rates," Airlangga explained.
Moreover, the World Bank praised Indonesia's efforts to reduce stunting, particularly through the Early Childhood Program and the strategic use of Village Funds.
"President Jokowi shared that the stunting rate has decreased from 37 percent to 21 percent, and extreme poverty has fallen from 6.2 percent to 0.8 percent. The President also emphasized the Village Funds program, which allocates Rp 71 trillion for rural development, including stunting reduction," Airlangga added.
Airlangga concluded that the World Bank considers Indonesia's programs to be large-scale and exemplary, with the potential to serve as models for other nations. "The World Bank anticipates that these impactful programs will set a precedent for countries beyond Indonesia," he noted.
In June, the World Bank revised Indonesia's projected gross domestic product (GDP) growth upward, estimating an average annual growth of 5.1 percent from 2024 to 2026, up from the previous forecast of 4.9 percent for both 2024 and 2025.
According to the World Bank, Indonesia's economy is expected to continue its steady growth trajectory, supported by increased public spending, rising business investments, and stable consumer demand. This positive outlook remains despite challenges such as a declining commodity boom, fluctuations in food and energy costs, and rising geopolitical uncertainties.