JAKARTA, RAKYAT NEWS – Indonesia’s economy has recently been recognized by the International Monetary Fund (IMF) as the eighth largest in the world in terms of Gross Domestic Product (GDP) based on Purchasing Power Parity (PPP). According to IMF projections, Indonesia’s GDP will reach approximately $4.98 trillion in 2024, surpassing the GDP of both France and the United Kingdom.

This achievement marks a significant milestone for Indonesia, as it outpaces the two European economic giants. France’s GDP is expected to be $4.36 trillion, while the UK’s is projected to stand at $4.28 trillion.

Indonesia’s rise in the global economic rankings highlights the country’s growing economic power and its expanding role in the global market.

The IMF’s assessment uses the PPP method, which compares the standard of living and the price of goods and services across countries. By considering local prices and living standards, PPP provides a more accurate picture of a country’s economic strength compared to nominal GDP, which only looks at market exchange rates.

Leading the world in GDP by PPP in 2024 is China, with a staggering $37.07 trillion, followed by the United States at $29.17 trillion. India and Russia rank third and fourth, with GDPs of $16.02 trillion and $6.9 trillion, respectively. Japan follows closely at fifth place with a GDP of $6.57 trillion, and Germany sits in sixth with $6.02 trillion. Brazil comes in seventh with $5.7 trillion, just ahead of Indonesia.

Indonesia’s rapid growth has been attributed to various factors, including robust domestic consumption, a growing middle class, and increased foreign investments.

The country’s focus on infrastructure development and economic diversification has also played a significant role in boosting its economic outlook.

In the coming years, the IMF predicts that Indonesia’s economy will continue to grow at a rate of 5.1% annually. This is a strong growth projection, especially compared to the global economic growth forecast, which is expected to remain below historical averages in 2025 and 2026.

Airlangga Hartarto, Indonesia’s Coordinating Minister for Economic Affairs, expressed pride in the country’s economic performance, noting that Indonesia’s GDP now outperforms nations like Italy and France. He emphasized the importance of maintaining this growth trajectory while ensuring the stability of the Indonesian economy.

Despite challenges posed by global geopolitical tensions and economic slowdowns, Indonesia’s strong economic fundamentals are expected to help it maintain steady growth. The government’s continued focus on investment, innovation, and infrastructure development will be critical as Indonesia seeks to further solidify its position as a major global economic player. (Uki Ruknuddin)