According to data from Statistics Indonesia (BPS) that was published yesterday, Indonesia's unemployment rate has fallen to 5.92 percent in February 2013 from 6.14 percent in August 2012. BPS, a government agency, always takes the months February and August as bases to release its (un)employment figures. From August 2012 to February 2013 about 3.1 million Indonesians were added to Indonesia's labor force. This means that the country's current labor force numbers 121.2 million people (out a total population of 240 million).

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As usual, we take a look at a number of macroeconomic indicators to assess the state of the Indonesian economy ahead of the release of Q2-2023 gross domestic product (GDP) data (we expect Indonesia’s Statistical Agency, or BPS, to release the data in the second week of August 2023).

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Good news at the start of July 2020. The World Bank upgraded Indonesia’s economic status to an ‘upper-middle income country’ (from ‘lower-middle income country’) per 1 July 2020. The key consideration for the World Bank was that Indonesia’s gross national income (GNI) per capita increased from USD $3,840 in 2018 to USD $4,050 in 2019. This means that an upgrade was needed (see the table below).

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After having successfully hosted the 2018 Asian Games last September, Indonesia hosted the 2018 Annual Meetings of the International Monetary Fund (IMF) and World Bank Group on Bali on 8-14 October. Every year, the IMF and World Bank organize these meetings to discuss the latest financial and economic developments that occurred across the globe, while also poverty eradication and other key global issues – such as protectionism and climate change - are placed high on the agenda. The main themes of this year’s meetings include digital development and investing in human capital, which resulted in the “Bali Fintech Agenda” as well as the launch of “Human Capital Index”.

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In the second half of September 2018 the World Bank released its latest Indonesia Economic Quarterly (abbreviated IEQ), titled “Urbanization for All”. The IEQ, a flagship publication of the Washington-based institution which (at least in our view) is among the most interesting reports that are on a regular basis published about the Indonesian economy, has two main aims. Firstly, it informs about the key developments that occurred in Indonesia’s economy over the past three months, and places these developments in a longer-term and global context. Secondly, the IEQ provides an in-depth examination of selected economic and policy issues and an analysis of Indonesia’s medium-term development challenges.

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The World Bank revised down its economic growth projection for Indonesia from 5.3 percent year-on-year (y/y) to 5.2 percent (y/y) for full-year 2018 amid the complex external environment: tightening monetary conditions, a potential global trade war, financial volatility, and geopolitical concerns. Such external factors put pressure on Indonesia's export performance, hence on domestic economic growth.

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In the April 2018 edition of its East Asia and Pacific Economic Update, the World Bank is cautiously optimistic about economic growth in developing East Asia and Pacific (EAP). After a better-than-expected global economy in 2017, growth in developing EAP is expected to remain stable in 2018, reflected by solid prospects in Thailand and several commodity exporters, notably Indonesia. Domestic demand is estimated to remain robust in most of the region's economies and continue to underpin growth in 2018 and beyond. However, with economies operating close to their potential, price pressures are expected to rise.

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The World Bank released the latest edition of its flagship publication Indonesia Economic Quarterly on Tuesday (27/03). The March 2018 edition of the report is entitled "Towards Inclusive Growth". In the report the World Bank is positive about Indonesia's economic outlook after seeing the nation's real gross domestic product (GDP) growth picking up at 5.2 percent year-on-year (y/y) in the fourth quarter of 2017 (accelerating from 5.1 percent y/y in the previous quarter).

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In the World Bank's January 2018 edition of its Global Economic Prospect (GEP) report, released earlier this week, Indonesia's economic growth is considered stable at 5.3 percent year-on-year (y/y) in the 2018-2020 period. Although compared to emerging peers in the Asian region, a 5.3 percent growth pace is not too impressive, the positive message from the GEP report is that - contrary to many emerging Asian peers - Indonesia is not expected to see sliding economic growth in the years ahead.

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A new World Bank report, entitled "Indonesia's Global Workers: Juggling Opportunities & Risks", discusses the attractive opportunities for Indonesian workers to decide to migrate and work abroad. However, the report also notes that it is important for Indonesian authorities to reform its labor migration system to allow those Indonesians who want to work abroad can access better paid jobs, while their protection can be improved.

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Indonesia continued to climb sharply in the World Bank's Doing Business Index. In the 2018 edition, which was released at the end of October 2017, Indonesia ranks 72nd, jumping 19 positions from being 91st in last year's ranking. The World Bank praised Indonesia and labelled it as the country that made the biggest improvements in business regulations among Asia Pacific nations since 2005.

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