Indonesia has recorded extraordinary achievements in the last two decades by managing to increase gross domestic product (GDP) fourfold and reduce poverty rates tenfold.
Indonesia’s remarkable achievement was revealed by the International Monetary Fund (IMF) through an official upload on the Instagram account @the_imf, on Sunday, December 29, 2024.
The UN’s financial agency stated that Indonesia, as a large archipelagic country in Southeast Asia with a population of 270 million, has succeeded in increasing GDP from previously US$1 trillion to US$ 1.4 trillion. The institution also underlined this extraordinary economic transformation as one of the significant achievements in the region.
“The Southeast Asian country, a vast archipelagic country with 270 million people, stretching 3,300 miles from west to east, the same distance as London to Kabul has increased its GDP fourfold to US$1.4 trillion,” wrote the IMF.
In addition, Indonesia’s poverty rate has also decreased drastically, namely from previously US$2.15 per day has fallen tenfold, to less than 2 percent. In fact, the Jakarta region recorded an average income that was almost equivalent to several countries in Europe.
“In Jakarta, the capital, the average income is almost the same as in Poland and not far from Portugal,” said the IMF in the post.
IMF data as of April 2024 shows that Indonesia’s GDP growth is at 5 percent, with an inflation rate recorded at 2.5 percent.
Even so, projections from the October 2024 edition of the World Economic Outlook estimate that Indonesia’s economic growth will stagnate at 5.1 percent in the 2024-2029 period.
This achievement reflects Indonesia’s success in carrying out significant economic and social reforms. However, the challenge of maintaining the momentum of economic growth remains, especially in facing global dynamics and maintaining domestic stability.
