Head of Fiscal Policy Agency at the Ministry of Finance, Febrio Kacaribu, stated that Indonesia's strong economic recovery has placed it back into the upper middle-income category, despite the classification threshold increasing to USD 4,466 from USD 4,256 in 2021. The World Bank recorded Indonesia's gross national income (GNI) per capita in 2022 at USD 4,580, a 9.8% increase from USD 4,170 in 2021. This return to the upper middle-income group is attributed to the effective handling of the pandemic, the implementation of the COVID-19 Handling and National Economic Recovery Program (PC-PEN), and economic transformation through resource-based downstreaming.
Various instruments of the State Revenue and Expenditure Budget (APBN) through the PC-PEN program for 2020-2022 played a crucial role in providing policy support during the pandemic crisis and accelerating national economic recovery. Additionally, the significant impact of resource-based downstreaming policies has boosted export performance and strengthened Indonesia's external balance. The government is committed to maintaining the quality of economic recovery, evidenced by the reduction of poverty to single-digit levels in 2021 and a consistent decrease in unemployment rates approaching pre-pandemic levels. To achieve Indonesia's vision of becoming a high-income country before 2045, a sustained high economic growth of 6% to 7% annually is necessary, and the increased GNI per capita in 2022 serves as a strong foundation for realizing the Vision of Indonesia Maju 2045. The government will continue implementing structural reforms and economic transformations to enhance competitiveness, productivity, and high value-added to the national economy.
