Indonesia's Ranking in the Global Competitiveness Index4 Replies
Hi everyone, I have been picking up on a lot of buzz surrounding Indonesia's latest ranking in the Global Competitiveness Index, which has seen a marked improvement from 50th last year to 38th. In ASEAN, Indonesia ranks behind Singapore (#2), Malaysia (#24), Brunei (#26), Thailand (#37). The remaining ASEAN countries are: Philippines at (#59), Vietnam (#70), Laos (#81), Cambodia (#88) and Myanmar (#139) Interestingly, Eurocham have released a comparison on the development of Indonesia's competitiveness year on year. Among the top problematic factors are : inefficient bureaucracy, corruption, inadequate infrastructure, work ethic and restrictive labour regulations. The Wall Street Journal cites Indonesia's infrastructure improvement projects as being the force behind this rebound for Indonesia. I personally think, were there more aggresive actions by the law-enforcement agencies, in particular the KPK (Corruption Eradication Commission), then we would see significant trickle down effects on the other problems hindering competitiveness, almost certainly on the level of bureacratic efficiency as well as on the ability to further improve infrastructure. The improved rule of law, in effect would give greater confidence to investors and thus ease the restrictive labour regulatory policies currently adopted by the government.