Indonesia’s ranking in terms of competitiveness has experienced a significant surge, catapulting from the 44th position out of 64 countries to an impressive 34th position. This remarkable improvement, as revealed in the Institute for Management Development World Competitiveness Yearbook 2023 report, holds great promise for the achievement of the Ministry of Investment/Investment Coordinating Board’s (BKPM) target investment of Rp1,400 trillion for this year.
Yuliot, the Deputy for Investment Climate Development at the Ministry of Investment/BKPM, expressed the belief that this enhancement in competitiveness ranking will serve as a crucial reference for investors, enabling them to gauge the potential and make informed investment decisions.
In his words, “We hope that this ranking improvement will have a positive impact on increasing investor confidence and achieving the investment realization target of Rp1,400 trillion in 2023” (Bisnis, Tuesday, June 20, 2023).
Yuliot further emphasized that Indonesia’s elevation in the ranking can be attributed to the government’s proactive policies and efficient economic management across multiple dimensions.
This recognition aligns with the evaluation conducted by the Institute for Management Development World Competitiveness Center, which assesses four key factors: economic performance, government efficiency, business efficiency, and infrastructure.
When considering economic performance, Indonesia has secured the 29th position, showcasing a notable improvement compared to its previous rankings of 35th and 42nd in the preceding years. In terms of government efficiency, the country has climbed four spots to occupy the 31st position, underscoring the government’s commitment to streamlining administrative processes and enhancing overall efficiency.
Indonesia’s remarkable ascent is further highlighted by its business efficiency ranking, where it has surged 11 places to claim the 20th position compared to the previous year.
Meanwhile, in the realm of infrastructure, Indonesia currently occupies the 51st position. Notably, this achievement represents the country’s most impressive performance in the past five years, reflecting ongoing efforts to bolster its infrastructure development.
Within this comprehensive ranking, Denmark, Ireland, and Switzerland have emerged as the top three nations in the Institute for Management Development World Competitiveness Yearbook 2023 report. Denmark, having maintained its leading position since the previous year, continues to serve as a benchmark for success.
Ireland, on the other hand, has experienced a substantial leap from the 11th rank in 2022 to the second position this year. As for Switzerland, it has reluctantly slid to the third position after occupying the second spot in the previous year’s rankings.
The entire ranking process is built upon the evaluation of 336 competitiveness criteria, meticulously selected through comprehensive research encompassing economic literature, international and regional sources, as well as valuable input from business professionals, government institutions, and esteemed academics.
This rigorous methodology ensures that the rankings remain relevant and up to date, accounting for emerging theories, cutting-edge research, new data, and the ever-evolving global economic landscape.
