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The World Bank: Indonesia's Economy Must Grow By 6 Percent To Achieve Developed Nation Status

The World Bank emphasizes that Indonesia must elevate its economic growth to a minimum of 6 percent annually in order to attain high-income country status by 2035. 

Carolyn Turk, the World Bank's Country Director for Indonesia and Timor-Leste, asserted that while Indonesia's economic growth remains relatively stable at around 5 percent, further reforms are essential to enhance productivity and competitiveness within the private sector. 

"You are fortunate to have a large population, which provides a moderating effect. However, as you aim for high-income status by 2035, annual growth must be accelerated to at least 6 percent," Turk stated during the dissemination event for the World Bank report 'Business Ready (B-READY) 2024' at the Four Seasons Jakarta on Monday, February 10. 

She noted that the government has set a target for economic growth exceeding 6 percent. However, achieving this goal will require various regulatory reforms and improvements in productivity within the manufacturing and service sectors. 

The World Bank also observed that globally, the quality of regulations in economies received an average score of 65.6 out of 100, indicating that most countries are nearing two-thirds of the way to being business-ready. 

"You will hear more about Indonesia specifically, and this indicates that the economy is almost two-thirds of the way to being prepared for business in this category," she added. 

Nevertheless, public services in many countries still lag behind, with scores approaching 50 percent, suggesting significant room for improvement. 

"The B-READY results in Indonesia align closely with other reports released by the World Bank in 2024," Turk remarked. 

In June 2024, the World Bank published the report 'Unleashing Indonesia's Business Potential,' which highlights the critical role of the private sector in long-term growth. 

Tag: Carolyn Turk World Bank