Indonesia rose to 27th place in the IMD World Competitiveness Ranking 2024, surpassing the UK and Japan. Minister Airlangga highlighted measures in economic performance and sustainable reform to increase investor confidence.

Source: Kabar 24

Citing the Institute for Management Development (IMD) World Competitiveness Ranking (WCR) 2024, Indonesia’s competitiveness now exceeds that of the UK (28th), Japan (38th), and India (39th). Minister Airlangga noted Indonesia’s position as a top-three competitor in Southeast Asia, following Singapore (1st) and Thailand (25th).

Minister Airlangga described this as a significant achievement, especially considering Indonesia’s 34th place in 2023. “This reflects the Government’s concrete effort to improve business ease and create a conducive investment climate through the implementation of the Omnibus Law,” he said.

The improvement in competitiveness is supported by gains in business efficiency (from 20th to 14th), government efficiency (from 31st to 23rd), and economic performance (from 29th to 24th). However, Minister Airlangga emphasised the ongoing need to enhance infrastructure.

In particular, Minister Airlangga highlighted the driving factors behind business efficiency improvements, such as labour availability (2nd), corporate management (10th), and social behaviour (12th). Moreover, legislative enhancements in business laws  were also responsible for the  eight-rank jump in government efficiency, advancing from 49th in 2023 to 42nd in 2024.

Economic performance gains were primarily driven by strong domestic economic power (10th) and stable price levels (12th). According to the Central Statistics Agency (BPS), Indonesia’s economic growth in Q1 2024 rose to 5.11% year-on-year compared to 5.04% in the previous quarter.

Minister Airlangga explained that a country’s improved competitiveness ranking significantly enhances its appeal to investors. High competitiveness rankings elevate a country’s reputation and positive image among global investors, crucial factors in their investment decisions.

In line with these achievements, Indonesia’s investment realisation through Q1 2024 showed a positive trend, reaching IDR 401.5 trillion, marking a 22.1% year-on-year increase, with foreign direct investment (PMA) reaching IDR 204.4 trillion, a 15.5% year-on-year growth.

Minister Airlangga further stated that the Indonesian government will continue efforts to create an even better investment climate. “To improve business ease, the Government is refining regulations through the Omnibus Law and its derivative rules, such as Government Regulation No. 5 of 2021 on Risk-Based Business Licensing,” he added.

Government Regulation No. 5 of 2021 is currently being revised and finalised in order to improve basic business requirement processes, norms, standards, procedures, and risk-based business licensing supervision. It is expected to be completed by July 2024, before the end of President Joko Widodo’s term.

Additionally, the government continues to enhance services through the improvement of the Online Single Submission (OSS) system.

Source: Antara News