Indonesia loses shine in competitiveness rankings
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Indonesia may have the largest economy in Southeast Asia and the nation may be a member of the G-20 - but it is not one of the most competitive economies in the world, according to the World Competitiveness Yearbook rankings for 2012.
Indonesia was ranked 42nd in a field of 59 countries in 2012, dropping from 37th place in 2011, in this year’s report compiled by the IMD’s World Competitiveness Centre in Switzerland.
Despite the government touting sustained 6-per-cent economic growth rates, rising exports, low inflation, large foreign-exchange reserves, investment-grade ratings for its sovereign debt, increased foreign direct investment, low debt and declining poverty and unemployment, Indonesia’s new competitiveness ranking shows that these trends have not contributed to national prosperity and that the fruits of economic growth have not trickled down to the masses.
The nation’s Southeast Asian neighbours Malaysia, in 14th place, and Thailand, in 30th place, both figured higher than Indonesia in the rankings.
However, the country’s standing in the World Economic Forum’s global competitive rankings was more impressive: Indonesia was ranked 44 of 239 countries in 2010-2011 index, a huge jump from 69th place in 2005.
The leap followed President Susilo Bambang Yudhoyono’s personal interest in boosting perceptions of the nation’s competitiveness. In 2007, Yudhoyono asked the help of then Swiss president Micheline Calmy-Remy, whose country ranked number 1 in 2007, in improving Indonesia’s standing.
The next year, Yudhoyono sent a team to Switzerland to study how a such small country could top the rankings.
