Indonesia Climbs Up Global Competitiveness Ladder: WEF Report

Indonesia Climbs Up Global Competitiveness Ladder: WEF Report


Jakarta — Indonesia’s competitiveness has improved over the past year, on the back of the country’s large market, robust macroeconomic environment and notable efforts to improve business sophistication, according to a report by the World Economic Forum, published on Wednesday (27/09). The Global Competitiveness Report 2017-2018 rates Indonesia as the world’s 36th most competitive economy among 137 nations, with the country having improved five places from a year earlier. Indonesia took the place of Poland, which slipped to the 39th spot on this year’s list. “Indonesia is inching way up the competitiveness ladder [..] Indonesia improved its performance across all of its pillars,” the report says. The Global Competitiveness Index weighs each country’s competitiveness based on 12 pillars, that include a country’s institutions, policies and factors that determine the level of productivity. The latter also determines a country prosperity potential. Indonesia maintains its record as one of the top performers in terms of market size, macroeconomic stability, innovation and financial market development. The country is considered one of the top innovators among emerging economies. However, it is also worth mentioning that the country is “lagging quite far behind” in terms of technology readiness and labor market efficiency due to overlapping costs, limited wage flexibility and participation by women in the labor force. This year’s result is slightly different from last year’s, when inflation was among the five most problematic factors. The 2017 edition of the executive opinion survey is based on the views of 14,375 business executives in 148 economies and it was undertaken between February and June this year. Only 12,775 responses from people in 133 countries have been retained. This year’s survey includes views of 94 respondents from Indonesia, compared with 86 last year.

Source: thejakartaglobe