The IMD 2024 World Competitiveness Ranking (WCR) shows that Indonesia has significantly improved its position, climbing to twenty seventh place on this planet.
Indonesia has made a noticeable jump from thirty fourth in 2023 to twenty seventh in 2024. In Southeast Asia, Indonesia currently ranks third, behind Singapore and Thailand, with Singapore taking first place.
The top five countries in Southeast Asia in line with WCR 2024 are:
- Singapore (1st on this planet)
- Thailand (twenty fifth on this planet)
- Indonesia (twenty seventh on this planet)
- Malaysia (thirty fourth on this planet)
- Philippines (52nd on this planet)
Arturo Bris, director of the Global Competitiveness Center (WCC) at IMD, noted that countries corresponding to China, India, Brazil, Indonesia and Turkey have experienced rapid growth, significantly impacting trade, investment, innovation and geopolitics.
“Countries such as China, India, Brazil, Indonesia and Turkey are developing rapidly and currently play significant roles in these arenas,” Bris said in an official statement issued on Tuesday, June 18, 2024.
In 2024, the positions of Indonesia and Malaysia modified, with Malaysia dropping from twenty seventh to thirty fourth place as a consequence of aspects corresponding to currency weakness, political instability and policy uncertainty. In turn, Indonesia advanced from thirty fourth to twenty seventh place.
Bris attributed Indonesia’s improved position to raised economic performance, attractive capital inflows and GDP growth. He stressed that while Southeast Asia is usually doing well economically, Malaysia’s position has declined.
Globally, Indonesia ranks near the UK (twenty eighth), and ahead of Japan (thirty eighth) and India (thirty ninth). The UK’s rating has recently improved following a post-Brexit decline.
Decline in Japan’s competitiveness
Japan’s decline in competitiveness is linked to a slower pace of digital transformation and limited technology exports. Japan, once dominant in global technology, now lacks leading international technology corporations in areas corresponding to artificial intelligence, microchips and cloud computing.
Although India has steadily improved its rating during the last five years, its progress has been slower in comparison with Indonesia, mainly as a consequence of aspects related to economic and business efficiency corresponding to tax structure, banking, judicial management, employment opportunities and management efficiency enterprise.
The IMD Global Competitiveness Center assesses rankings based on economic performance, government effectiveness, business efficiency and infrastructure. Indonesia’s growth is basically driven by high scores in business efficiency (14th), government efficiency (twenty third) and economic performance (twenty fourth), even though it still lags in infrastructure, especially health, environment (61st). ), education (57th) and science (forty fifth) and technology (thirty second).
In terms of business efficiency, Indonesia leads when it comes to labor availability (2nd), effective business management (tenth) and supportive social values (twelfth). However, it must improve its financial results (twenty fifth place) and productivity (thirtieth place). When it involves government effectiveness, the bottom scores are for business laws (forty second) and social justice.
Indonesia scores well in tax policy (twelfth) and public financial policy (18th), which takes into consideration the efficiency of central and business banks.
The IMD WCR 2024 ranks countries based on long-term prosperity potential, using surveys and hard data to evaluate purchasing power, productivity, GDP and social, cultural and sustainability aspects.
