Indonesia Reclassified as an Upper-Middle-Income Country: A Look at GNI per Capita Trends Since 1969

Economics & Macro

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Cindy Mutia Annur 05/07/2023 16:59 WIB

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According to the latest World Bank data, Indonesia's GNI per capita reached US$4,580 in 2022. This places Indonesia back in the list of upper-middle-income countries.

Gross National Income (GNI) per Capita (1969-2022)

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Gross National Income (GNI) per Capita (1969-2022)

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Indonesia returned to the upper-middle-income country list in 2022.

According to the latest data from the World Bank, Indonesia's Gross National Income (GNI) per capita was US$4,580 in 2022, a year-on-year (YoY) increase of approximately 9.8%.

The World Bank's newly released category for upper-middle-income countries has a GNI per capita of US$4,466-US$13,845. This range is higher than the previous range of US$4,256-US$13,205.

"El Salvador, Indonesia, and the West Bank and Gaza were all very close to the upper-middle-income threshold in 2021, so even modest economic growth in 2022 was enough to bring these economies into this category," the World Bank stated on its website on Friday, June 30, 2023.

Furthermore, the World Bank also stated that the change in Indonesia's income category occurred because the national economy grew by 5.3% (YoY) in 2022.

Previously, Indonesia had been classified as an upper-middle-income country in 2019. However, the COVID-19 pandemic caused Indonesia to fall back into the lower-middle-income category for two consecutive years.

Despite successfully returning to the upper-middle-income country list, Indonesia's current per capita income level is still far from reaching the target of a high-income country, which is above US$13,845.

Over the past five decades, Indonesia's GNI per capita has shown an upward trend. This is illustrated in the graph above.

The World Bank classifies countries based on GNI per capita into low, middle, and high-income categories. The following are the country income category thresholds according to the World Bank as of July 1, 2023:

* Low-income countries have a per capita income of US$1,135 or less (previously US$1,085).
* Lower-middle-income countries have a per capita income of US$1,136-4,465 (previously US$1,086-4,255).
* Upper-middle-income countries have a per capita income of US$4,466-13,845 (previously US$4,256-13,205).
* High-income countries have a per capita income above US$13,845 (previously US$13,205).

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia Reclassified as an Upper-Middle-Income Country: A Look at GNI per Capita Trends Since 1969

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