In global life, competition is something that cannot be avoided, especially in economic competition. Every country whose have recognized sovereignty shows its independence in regulating the complexity of their domestic and international economy. One of the institutions that provide an assessment of the competitiveness of the world economy, the IMD World Competitiveness Yearbook (WCY) 2019, has recently released state data that show progress and deterioration in their economic index.
Indonesia is the only country that has increased rapidly by climbing the rank of 32, which was previously stagnant at rank 43. IMD Director WCY Arturo Bris said that Indonesia’s competitiveness rankings rose significantly from 11 to 32. Indonesia scored 73.59.
The assessment was conducted on 63 countries to be evaluated for competitiveness based on the overall ranking of the four factors of competitive factors, namely economic performance, government efficiency, Business Efficiency, and infrastructure. “The WCY IMD has been evaluating global competitiveness since 1989 and has become a reference for global competitiveness,” he said through written information on Sunday (02/06/2019).
Arturo further added the competitiveness assessment of the four competitive factors was based on 143 criteria from hard data which were statistical data from national and international sources and 92 criteria from data research which was a combination of international panel of experts and executive opinion surveys.
“Hard data assessment represents 2/3 of the weight of the final score of data competitiveness and research representing 1/3 the weight of the final score of competitiveness,” he explained.
Meanwhile, WCY IMD Research Coordinator and LM FEB UI Consultant Director Willem Makaliwe said that the increase in competitiveness experienced by Indonesia was very significant.
This can be seen from the trend since 2015, which shows Indonesia’s competitiveness ranking is still above the 40th rank.
“The increase in Indonesia’s competitiveness ranking is the second most significant after Saudi Arabia which also rose by 13 ranks from position 39 to position 26.
Meanwhile, changes in ranking of other countries are not very significant,” he explained
In terms of region, Indonesia’s competitiveness in the Asia Pacific region is still stagnant as in 2018 in 11th position out of 14 countries. Meanwhile, in the ASEAN region, Indonesia’s competitiveness is still below Singapore (ranked 1), Malaysia (ranked 22), and Thailand (ranked 25).
“What is also encouraging is that, for countries with populations above 20 million, Indonesia’s competitiveness ranks up to three ranks 14th out of 29 countries,” he explained.