In July 2023, Indonesia regained its upper-middle income country status, as announced by the World Bank. After initially achieving this status in 2020, Indonesia lost it due to the World Bank’s revised categorization and the global crises. However, Indonesia demonstrated a rapid recovery in the first half of 2023. To sustain positive growth in the second half, President Jokowi mandated the administration to boost consumption, meet investment targets, ensure fertilizer availability, maintain stability in the monetary and banking sectors and avoid political competition that could hinder government programs.
In addition, President Jokowi launched the final phase of the National Long-Term Development Plan (RPJPN) 2025-2045 which highlighted state stability, sustainability and human capital. State stability success is defined in terms of the per capita income, sustainability progress will be demonstrated by domestic biotechnology and innovation industries, while human capital improvements will be reflected by a robust STEM curriculum. If the RPJPN 2025-2045 succeeds, President Widodo’s aspirations for a sustainable, high-tech Nusantara will be on track for realization.
In order to the implementation of his plans, Jokowi has also taken important measures to accelerate economic progress including the COVID-19 pandemic emergency status and the mask mandate on public transportation starting June 2023. As Indonesia continues to implement growth initiatives like RPJPN 2025-2045, the revocation of COVID-19 emergency status may serve as a catalyst for the recovery of the Indonesian economy after three years of disruption and recession. Indonesia’s daily COVID-19 caseload as of June 2023 is nearing zero.
