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Jakarta Post

Indonesia’s new economic status: Challenges for exports

  • Fuji Anrina

    Jakarta

Jakarta   /   Fri, August 14 2020   /  01:00 am
Set for shipment: Multipurpose vehicles are parked at Tanjung Priok Port’s car terminal prior to being exported on April 8. Association of Indonesian Automotive Manufacturers (Gaikindo) data shows that Indonesia exported 104,158 built-up cars in the first semester of this year. (Antara/Aditya Pradana Putra)

Indonesia celebrates its 75th anniversary of independence with a new economic status. Earlier last month, the World Bank raised Indonesia’s status from that of a lower-middle-income economy to that of an upper-middle-income economy. Indonesia has now officially joined other big economies like China, Brazil, South Africa, Turkey, Malaysia and Thailand. With this new status, Indonesia is one step closer to becoming a high-income country, the highest level of economic status according to World Bank’s classification. The World Bank uses this classification as a factor to determine a country’s eligibility to use the Bank’s facilities, including loan pricing. The upgraded status is also expected to improve the investment climate, boost trade and enhance economic the competitiveness of the country. Despite the benefits that the improved rating will bring, it mig...