PwC Projection: Indonesia to Become the World's Fourth Largest Economy by 2050

President Joko Widodo (Jokowi) aims for Indonesia's Gross Domestic Product (GDP) to reach US$7 trillion by 2045, making it the world's fifth-largest economy. This presidential aspiration, however, will not be automatically achieved and requires concerted effort from all parties.

Jokowi's ambition aligns with economic projections from PricewaterhouseCoopers (PwC). In its report titled "The Long View: How will the global economic order change by 2050?", PwC projects Indonesia's GDP, measured by Purchasing Power Parity (PPP), to reach US$5.42 trillion by 2030.

(Read Databoks: Indonesia's Economy Predicted to Reach US$1.6 Trillion in 2024)

PwC predicts Indonesia's economy will be the world's fifth largest in 2030. It is then projected to grow to US$10.52 trillion by 2050, ranking fourth globally, behind China, India, and the United States.

Purchasing Power Parity (PPP) in economics is a method used to calculate an alternative exchange rate between the currencies of two countries. PPP exchange rates are commonly used in international comparisons of a country's standard of living, typically measured in US dollars.

(Read Databoks: Did Indonesia's GDP Really Reach US$1 Trillion?)