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Kamis, 27 Juni 2024

Indonesia Achieves Its Highest Competitiveness Ranking in History

Jakarta, June 27, 2024 – For the first time, Indonesia has achieved its highest competitiveness ranking according to the International Institute for Management Development (IMD) in its recently released World Competitiveness Ranking (WCR) 2024. In the latest report, Indonesia ranks 27th out of 67 countries, climbing seven places from last year’s position of 34, with a score of 71.52. This marks the first time since 1997 that Indonesia has entered the top 20 rankings, achieved during President Joko Widodo’s second term, making it the highest ranking in the nation’s history. In Southeast Asia, Indonesia is among the top three, following Singapore (1st) and Thailand (25th).

The Ministry of Investment and Downstream Industry/BKPM views this significant improvement in Indonesia’s competitiveness ranking as a positive development, boosting investor confidence, particularly among foreign investors, in Indonesia’s business climate. Tina Talisa, Special Staff for Regional Affairs at the Ministry of Investment and Downstream Industry/BKPM, stated that the seven-position rise in Indonesia’s competitiveness ranking reflects the effectiveness of measures implemented under President Joko Widodo’s administration.


“This remarkable rise to 27th position proves that the efforts undertaken during President Joko Widodo’s two terms are yielding results. This is the highest ranking in history and a clear indicator that Indonesia is ready to compete globally. Among ASEAN countries, we are now in the top three,” said Tina.

Over the past five years, 2024 marks Indonesia’s achievement of the 27th position. Previously, Indonesia ranked 34th (2023), 44th (2022), 37th (2021), and 40th (2020). IMD has conducted the WCR since 1989, and Indonesia has been included in the assessment since 1997.


“Throughout President Joko Widodo’s 10-year administration, our ranking has fluctuated between the 30s and 40s. This year, for the first time, we broke into the 20s. This demonstrates that the policies implemented by President Joko Widodo and his cabinet have brought significant positive changes for the nation,” Tina emphasized.


In this year’s report, Indonesia showed improvements in three of the four main factors evaluated: Economic Performance (ranked 24th, up 5 positions), Government Efficiency (ranked 23rd, up 8 positions), and Business Efficiency (ranked 14th, up 6 positions)—second only to Singapore in Southeast Asia. The only factor experiencing a decline was Infrastructure, which ranked 52nd (down 1 position).


Tina also highlighted significant progress in three specific indicators this year: Domestic Economy (up 18 positions), Institutional Framework (up 14 positions), and Productivity & Efficiency (up 12 positions). Despite these gains, Productivity & Efficiency remains a key area for further improvement as it is still ranked relatively low.


“Institutionally, the government has made substantial reforms. The Job Creation Law, initially enacted in 2020 and refined in 2023 through a Government Regulation in Lieu of Law, highlights inclusive economic growth and MSME empowerment. These efforts have been consistently implemented across all ministries and agencies,” added Tina.


The Indonesian Government passed Law No. 11 of 2020 on Job Creation, later replaced by Law No. 6 of 2023. To support MSMEs, the Ministry of Investment and Downstream Industry/BKPM issued Ministerial Regulation No. 1 of 2022 on implementing partnerships between large enterprises and MSMEs at the regional level.

“The increasingly attractive investment climate, coupled with political stability, strengthens Indonesia’s competitiveness. This serves as a legacy of President Joko Widodo for the next administration, which will be led by President-elect Prabowo and Vice President-elect Gibran. Achieving this record-high ranking in the final year of President Joko Widodo’s administration provides a strong foundation for future sustainability,” Tina concluded.


Indonesia, along with China, India, Brazil, and Turkey, continues to experience rapid growth and development, playing a significant role in global trade, investment, innovation, and geopolitics. However, challenges remain, including the need for clear economic policies under the new administration, legal certainty, continued bureaucratic reform, and the development of new economic growth centers. 


For further information, please contact:

R. Leidy Novanda

Senior Public Relations Officer

Communications and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: humas@bkpm.go.id

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