Jakarta. Indonesia is beating major economies such as Japan and the UK in the 2024 World Competitiveness Ranking by the Institute for Management Development (IMD).

Indonesia placed 27th out of 67 countries in the rankings, up by 7 spots from the 2023 list. Indonesia also placed higher than Japan and the UK, which placed 38th and 28th, respectively. The report showed that Indonesia was in the top 3 among Southeast Asian countries, just behind Singapore and Thailand. 

The report attributed Indonesia’s achievements to the improvements across the business efficiency sector, in which the country rose from being the 20th to 14th. Indonesia used to place 31st in government efficiency, but then jumped to 23rd in the latest ranking. Its economic performance ranking also went up from 24th to 29th place. However, the country is still lagging behind in terms of infrastructure.

For business efficiency, Indonesia placed 2nd in the labor market pillar, 10th in management practices, as well as 12th in attitudes and values. In government efficiency, business legislation rose from 49th place to 42nd this year. Domestic economy (10th) and prices (12th) also caused Indonesia to climb in the economic performance pillar rankings.

“The [World Competitiveness Ranking] is concrete proof to the government’s efforts in improving ease-of-doing-business and creating a good investment climate for the investors through the Job Creation Law,” senior minister Airlangga Hartarto was quoted as saying in a ministerial press statement on Wednesday.

According to the Central Statistics Agency (BPS), Indonesia’s economy grew 5.11 percent year-on-year (yoy) in Q1-2024, compared to the 5.04 percent yoy growth in the previous quarter. Airlangga said an improved competitiveness ranking could help Indonesia attract investors. 

Indonesia already attracted Rp 401.5 trillion as of the first quarter of 2024, up by 22.1 percent yoy. The foreign direct investments (FDI) stood at Rp 204.4 trillion, marking a 15.5 percent yoy increase. To improve the country’s ease-of-doing-business, the government launched the Job Creation Law and its 2021 derivative government regulations on risk-based business licensing. The 2021 government regulation is currently undergoing some amendments, and has reached the final stage of the revisions. The government also continues to improve the online single submission system, according to Airlangga.