He hopes that the momentum of the economic crisis that is also being experienced by developed countries can be used by the Indonesian people to make big leaps in various fields in order to catch up so far.
“And, in 25 years from now, at the century-old Republic of Indonesia, we must make great progress, making Indonesia a developed country,” Jokowi said in his state speech at the Annual Session of the MPR, DPR and DPD, Friday (14/8/2020) morning.
So what is a country? upper middle income country?
State status upper middle income country or upper middle income countries are economic status issued based on classification standards world bank which is based on the 2019 Gross National Income (GNI) calculation.
Measuring income using GNI itself divides the status of the economy into four, namely low, middle to lower, middle to upper, and high.
Quoting from the site World Bank, GNI estimates are obtained from economists in units of countries World Bank and population size estimated by World Bank demographers from a variety of sources, including the United Nations biennial World Population Outlook.
The determination of the status of this economy is always updated every July 1 every year.
Still quoting from the World Bank website, countries with low-income economies (lower income) is defined as a country whose GNI calculated using the World Bank atlas method has an income of less than the equivalent of US $ 1,035.
As for the incoming country lower middle income (countries with lower middle income economies) have a per capita GNI of between US $ 1,036 and US $ 4,045.
Meanwhile, middle and upper income countries (upper middle income country) is a country with a per capita GNI between 4,046 US dollars and 12,535 US dollars.
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Meanwhile, for high-income economies (high income) is a country with a per capita GNI of 12,536 US dollars or more.
Previously, Indonesia’s status increase from lower middle income ke upper middle income was conveyed by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan.
“I also want to convey good news for us that Indonesia was announced by the World Bank as having risen from lower middle income country Becomes upper middle income country, “he said in launching Proud virtual campaign Made in Indonesia, Wednesday (1/7/2020).
Meanwhile, an economist at the Institute for Development of Economics and Finance (Indef) Bhima Yudhistira assessed that the impact of this status increase could be negative for Indonesia’s interests.
According to him, in terms of international trade, this increase in status has consequences for fewer Indonesian products to get tariff relief facilities.
In addition, this status increase can also have an impact on debt financing.
With this increase in status, Indonesia will be considered capable of paying interest with rate higher.
He is also worried that creditor countries will prioritize those countries incomelower than Indonesia.
“With this condition, Indonesia’s options for finding cheap sources of financing are increasingly limited. Bilateral loans with an interest rate of 0.5 to 1 percent are certainly getting heavier,” he said, as quoted by Antara. Kompas.com (2/7/2020).
The following are countries other than Indonesia that are included upper middle income country:
- Samoa amerika
- Northern Macedonia
- Russian Federation
- Bosnia dan Herzegovina
- south Africa
- St. Lucia
- St. Vincent dan Grenadines
- Costa Rica
- Dominican Republic
- Marshall Islands
- Venezuela, RB
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