Indonesia's Ranking in the Global Competitiveness Index

4 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.  


John McElwee 1378396253

Not a surprise to see this order, with the exception of Thailand and Malaysia. I would've thought that Thailand would be the second most competitive country for business in this part of the world.

Looks like despite their social problems, the Malaysians are doing alright.

Indrajit Singh 1378407574

Given her size, population and the resources, I think Indonesia should be counted among the BRICS. Too bad the political and business elite are too busy bickering among themselves to gain a number two position in southeast Asia. Singapore is hard to top, but fifth behind Brunei? (even with oil money). 


Sifa Fathonah 1378407943

As an Indonesian, i am glad to see the sharp improvement after years of continued decline on this index. BUT, at the end of today, its about what goes in your wallet isn't it?

Next year we have elections and I am scared this will mean another downward sliding. We say here "pasrah aja", be resigned to fate.

Mario-884284 1378413593

All good observations. Thank you for sharing your thoughts.



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