Indonesia Sets its Sights on Achieving $5,500 GDP per Capita Next Year

Indonesia's Population Predicted to Reach 324 Million by 2045, Dominated by Ages 65 and Above (Mahendra Putra - Unsplash)

The Indonesian government is laying out an ambitious goal of reaching a Gross Domestic Product (GDP) per capita of $5,500 in the upcoming year as part of its strategic plan to position itself as a developed nation by the year 2045.

Zulkifli Hasan, the Minister of Trade, underlined that Indonesia has already successfully ascended to the rank of upper middle-income countries, a significant accomplishment. Countries falling within this category currently exhibit a Gross National Income (GNI) per capita of approximately $4,466.

Speaking during the commencement of the Indonesia Shopping Festival 2023 at the esteemed Grand Indonesia Mall on Thursday (10/8/2023), Hasan articulated the nation’s economic aspirations. He noted, “In the forthcoming year, our aspiration is to achieve a per capita GDP of $5,500, and as we look ahead to 2030, we are setting our sights even higher, targeting a figure surpassing $10,000.”

The prospects for Indonesia’s transformation into a developed nation by 2045 appear to be considerably promising, largely due to the country’s possession of the essential prerequisites required for such an advancement.

The recorded GDP per capita for Indonesia in 2022 stood at $4,580. To propel this figure to $5,500 by the year 2024 and subsequently ascend to the esteemed status of a developed nation by 2045, Hasan underscores the critical necessity for an encompassing collaborative effort between the private sector, government entities, the broader community, and political entities.

Beyond this pivotal collective endeavor, Hasan, a politician associated with the PAN (National Mandate Party), extends an encouraging call to all stakeholders to embrace a sense of pride in products of domestic origin.

This surge of appreciation for locally-made goods holds the potential to catalyze a powerful sway within the domestic market, thereby generating the momentum required to make impactful inroads into the global market landscape.

In Hasan’s words, “By undertaking this pivotal action, a pathway opens for us to indeed attain the cherished status of a developed nation by 2045.”

Reiterating earlier reports, Indonesia, alongside a select group of nations, has effectively penetrated the echelons of upper middle-income countries. This welcome news was conveyed by none other than the esteemed World Bank in its comprehensive report released in June 2023.

It’s worth noting that Indonesia’s reclamation of this particular stature follows a brief hiatus from this category that occurred in 2020. The World Bank, following its annual protocol on July 1st, classifies nations based on the preceding year’s per capita income statistics, or the cumulative achievements of the year 2022.

By considering the growth trajectory of Indonesia’s GDP in the moderate scale in 2022, the World Bank has underscored that these economic dynamics are substantial enough to firmly position Indonesia within the coveted category of upper middle-income nations.