Indonesia's competitiveness was ranked 27th globally in 2024 then nosedived to 48th this year thanks to worsening business and government efficiency.
Skyscrapers are seen from the observation deck of the National Monument (Monas) in Central Jakarta on June 7, 2026. (AFP/Yasuyoshi Chiba)
Indonesia has gone down by 21 positions in the latest World Competitiveness Ranking from the peak it reached two years ago due to worsening government and business efficiency as well as infrastructure since President Prabowo Subianto took office.The archipelago is now ranked below its Southeast Asian peers namely the Philippines, Thailand, Vietnam, Malaysia and Singapore, who were ranked 47th, 26th, 27th, 15th and 1st, respectively.
The Institute for Management Development (IMD) recorded that the archipelago reached its best performance in 2024 when it secured the 27th global rank, only to nosedive to the 40th the following year and 48th this year, according to IMD’s 2026 ranking released on June 18.
The report wrote that “economies boasting credible institutions are better positioned to tackle today’s volatile and fragmented world”, signalling a shift from the traditional emphasis on cost, scale and output.
