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Skyscrapers are seen from the observation deck of the National Monument (Monas), a 132-meter landmark commemorating Indonesia's independence, in Jakarta on June 7, 2026. ( AFP/Yasuyoshi Chiba)
Indonesia's position in the World Competitiveness Ranking (WCR) continued its downward trend in 2026, falling eight places to 48th out of 70 economies, according to the World Competitiveness Yearbook (WCY) 2026 published by the International Institute for Management Development (IMD) in June. The ranking evaluates 70 economies using global, regional and national data, alongside surveys of senior executives. Indonesia's latest decline highlights persistent structural weaknesses and growing fiscal pressures.In terms of peer-group rankings, Indonesia dropped to 14th out of 15 Asia Pacific economies. Its ranking among countries with populations exceeding 20 million declined to 21st out of 32, while its position among economies with GDP per capita below US$20,000 fell sharply from fifth out of 24 countries to 11th out of 25.
The latest decline followed an even steeper deterioration in 2025, when Indonesia fell 13 places to 40th out of 69 economies. Its ranking among Asia Pacific economies slipped from eighth to 11th out of 14, while its position among countries with populations above 20 million dropped by 6 places to 16th out of 32. The decline coincided with weakening manufacturing activity, as Indonesia's manufacturing purchasing managers' index (PMI) remained in contraction territory at 46.7 in April 2025 before improving only slightly to 47.5 in May.
