Jakarta: The World Bank has raised Indonesia's status from a lower middle income country to an upper middle income country.
Indonesia's Gross National Income (GNI) per capita reached USD4,050 last year, rising from USD3,840 in the previous year.
The World Bank classifies countries based on GNI per capita in 4 categories, namely: Low Income (USD1,035), Lower Middle Income (USD1,036 - USD4,045), Upper Middle Income (USD4,046 - USD12,535) and High Income (> USD 12,535).
The World Bank uses this classification as one of the factors to determine a country is eligible to use World Bank facilities and products, including loan pricing.
"The increase in the status of Indonesia is evidence of Indonesia's economic resilience and sustainable growth that has been maintained in recent years," the Indonesian Ministry of Finance said in a release on Thursday.
According to the ministry, This status improvement will further strengthen the trust and perception of investors, trading partners, bilateral partners and development partners for the resilience of the Indonesian economy.
In addition, this status is expected to increase investment, improve current account performance, encourage economic competitiveness and strengthen financial support.Artikel Asli