Indonesia's Finance Minister, Purbaya Yudhi Sadewa, has strongly criticized the World Bank's revised economic growth forecast for 2026, calling it a "serious mistake." The World Bank lowered its projection for Indonesia's GDP growth from 4.8 percent to 4.7 percent. Purbaya stated that the revised projection is "imprecise" and does not align with the government's data, which indicates strengthening economic conditions.
Purbaya attributed the lower forecast partly to assumptions of high global oil prices, suggesting these conditions are temporary and projections will improve as energy prices normalize. He expressed anticipation for an apology from the World Bank once oil prices stabilize and forecasts are revised again. The Minister also noted that Indonesia's economy is expected to grow between 5.5 and 5.6 percent in the first quarter of 2026 alone, implying the World Bank's full-year projection suggests an improbable sharp downturn later in the year.
The World Bank, in its April East Asia and Pacific Economic Update, cited external pressures including higher global oil prices and increased investor caution as reasons for the downgrade. However, the report also acknowledged that commodity revenues and government investment initiatives could cushion some of these impacts. Coordinating Minister for Economic Affairs Airlangga Hartarto described the downgrade as part of a broader global trend, emphasizing that Indonesia's projected growth remains above the global average.