2021 WCY Survey: Indonesia’s Competitiveness Rises to 37th Rank, Here’s the Note.

2021 WCY Survey: Indonesia’s Competitiveness Rises to 37th Rank, Here’s the Note.




Bisnis.com, JAKARTA – (19/8/2021) The 2021 World Competitiveness Yearbook (WCY) survey conducted by the Institute Management Development (IMD) places Indonesia’s competitiveness at 37th out of a total of 64 countries recorded. Indonesia’s ranking in 2021 has slightly increased from its 2019 position at 40.


Willem Makaliwe, Managing Director of LM FEB UI, said that although Indonesia’s ranking has increased in total, in the Asia Pacific country rankings, Indonesia is still in 11th position out of 14 countries, ahead of India and the Philippines.


“It’s understood that the increase in Indonesia’s ranking is not entirely due to an increase in national competitiveness but also a decrease in the competitiveness of other countries, especially due to the Covid-19 pandemic.” Willem said.


According to Arza, Senior Researcher for LM FEB UI, the results of the ranking assessment are based on an analysis of Indonesia’s economic performance data up to 2020, as well as the assessment of business players regarding the perception of the condition of the business environment that they are facing.


Meanwhile, survey activities in Indonesia were carried out by the FEB UI Management Institute, which acted as IMD’s partner in Indonesia for the last five years together with Nu PMK.


He said the competitiveness assessment method was based on the assessment of 4 (four) main components including, Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure.


From the survey results, the improvement in Indonesia’s ranking can be seen in the components of business and government efficiency. The government’s efficiency rating has increased from 31st in 2020 to 26th in 2021.


“The rating upgrade for this component is supported by the factor that public financial policies are quite effective in responding to pandemic conditions.” Willem continued.



Meanwhile, the business efficiency component increased from 31st in 2020 to 25th in 2021 due to optimism for future business transformation.


According to the Head of Research and Consulting LM FEBUI Bayuadi Wibowo, Indonesia experienced a downgrade in two main components, namely economic performance and infrastructure.


Indonesia’s economic performance ranking in 2021 is at position 35, a decrease compared to 2020 at position 26. “The downgrade is driven by labor conditions, international trade, and domestic price levels.” said Bayu. Indonesia’s infrastructure ranking has also moved from 55th position in 2020 to 57th position in 2021.



According to Bayu, this is due to the readiness of health and education infrastructure in the face of the pandemic.


LM FEB UI Senior Researcher Taufiq Nur said the aspects that became the strengths of the Economic Performance component included: GDP growth, stability of fuel prices, investment growth.


Meanwhile, the weakness in this aspect is the low GDP per capita, trade-to-GDP ratio, and service exports.


In the government efficiency component, the aspects that become the strength factor include tax revenue and the effectiveness of the APBN, while the weaknesses are in the procedure for starting a business and the ratio of foreign currency reserves per capita.


“In the business efficiency component, the strength factor is the growth of the workforce, professional remuneration, and access to financial services, while the weakness lies in the low level of labor productivity.” Taufiq said.


Meanwhile, in the assessment of infrastructure components, the factors that become strengths are the cost component of cellular telecommunications and the ratio of utilization of new and renewable energy (EBT), while the weaknesses are the low number of patents produced, not yet spread of health service facilities, the ratio of computer users, and spending on health. .




Source: https://ekonomi.bisnis.com/read/20210819/9/1431362/survei-wcy-2021-daya-saing-indonesia-naik-ke-peringkat-37-ini-notenya.


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