ASIATODAY.ID, JAKARTA – The results of the 2024 IMD World Competitiveness Ranking (WCR) research show that Indonesia’s competitiveness ranking has shot up to 27th position in the world.
Indonesia’s ranking has risen significantly to seven places in 2024 from 34th in the world in 2024. For the Southeast Asia region, Indonesia is in the top three positions behind Singapore and Thailand. Singapore is in first position.
The following is the ranking of the top five countries with the best competitiveness in the Southeast Asia region according to the WCR 2024 report:
1.Singapore (1)
2.Thailand (25)
3.Indonesia (27)
4.Malaysia (34)
5.Philippines (52)
Director of the World Competitiveness Center (WCC0 IMD, Arturo Bris said, in the last few decades, countries including China, India, Brazil, Indonesia and Turkey have experienced rapid growth and development.
“The impact is that they now play an important role in trade, investment, innovation and geopolitics,” said Arturo, quoted from an official statement, Tuesday, June 18 2024.
In 2024, Indonesia and Malaysia will swap positions. Malaysia’s ranking drops to 34th position from 27th in 2024.
According to Bris, Malaysia’s performance will decline in 2024 due to currency weakness, political instability and uncertainty about government policy. Meanwhile, Indonesia rose from 34th place last year, and Malaysia was ranked 27th.
“Indonesia’s competitiveness is driven by improving economic performance, the ability to attract capital and growth in Gross Domestic Product (GDP). This year Southeast Asia’s economic performance is very good, except for Malaysia which has dropped in ranking,” he said.
Overall, Indonesia’s ranking is only slightly different from England (28), and managed to surpass the competitiveness of Japan (38) and India (39). The UK’s competitiveness ranking fell after Brexit due to its isolation from other European countries. England’s ranking has only improved this year.
Japan’s Competitiveness Declines
Meanwhile, Japan’s competitiveness is decreasing because this country is less aggressive in carrying out digital transformation. The indication is a decline in technology exports, even though previously Japan dominated world technology companies.
However, recently Japan no longer has multinational companies that offer new technology services such as AI, microchips, data management, cloud computing, and so on.
Meanwhile, India, although it has succeeded in improving its ranking in the last five years, this country’s improvement is not as fast as Indonesia.
According to Bris, this occurs due to economic factors and business efficiency, such as improving the tax structure, banking efficiency, judicial governance, availability of job opportunities, and efficiency of business management in the country.
The IMD World Competitiveness Center (WCC) uses four indicators to determine the 2024 WCR ranking, namely economic performance, government efficiency, business efficiency and infrastructure.
Of these four indicators, Indonesia’s competitiveness ranking was pushed up by business efficiency (14), government efficiency (23) and economic performance (24). However, Indonesia is still quite weak in terms of infrastructure availability, especially related to health and environmental infrastructure (61), education (57), science (45) and technology (32). Regarding business efficiency, things that succeeded in boosting Indonesia’s score were the massive availability of labor (2), the effectiveness of company management (10), behavior and community values that support company efficiency (12).
However, the company’s finances (25) and productivity (30) still need to be improved. For government efficiency, Indonesia’s score is worst related to business legislation (42) which supports private sector competitiveness, including trade, competition and employment regulations.
The second worst ranking is related to the social framework measuring the fairness of law enforcement, income and gender equality.
Meanwhile, for tax policy (12) and public financial policy (18) related to the efficiency of the central bank and commercial banks, Indonesia managed to get a good ranking.
The IMD WCR 2024 assessment is carried out based on a country’s ability to improve prosperity in the long term. This means that research based on surveys and hard data is carried out not only to measure levels of purchasing power, productivity and gross domestic product, but also takes into account social, cultural and sustainability factors. (ATN)
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