Indonesia's Competitiveness Ranks 48, Among Lowest in Region?

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TEMPO.CO, Jakarta - Indonesia's competitiveness ranking fell 8 places compared to 2025. This year, the International Institute for Management Development (IMD) ranked Indonesia at 48th out of 70 countries in the World Competitiveness Ranking 2026.

In its report, IMD mentioned several challenges that Indonesia faces this year, including global economic conditions threatening energy security; relatively stagnant economic growth; government budget allocation adjustments; inadequate infrastructure and human resource competencies; and limited funding availability.

IMD assessed Indonesia based on four main criteria: economic performance, government efficiency, business efficiency, and infrastructure.

Indonesia ranks 24 with a score of 59.9 for economic performance. For government efficiency, Indonesia ranks 38 with a score of 55.1, and 50 for business efficiency with a score of 40.9. For infrastructure, Indonesia ranks 58 with a score of 31.9.

Based on the region, Indonesia occupies the second-lowest position, ranking 14th out of 15 countries in the Asia-Pacific region. Meanwhile, based on the population with more than 20 million people, Indonesia ranks 21 out of 32 countries.

Indonesia's global competitiveness ranking is the lowest in the past five years. In 2022, Indonesia was at 44. The following year, Indonesia rose to 34. Indonesia's competitiveness sharply increased to 27 in 2024, but dropped yet again in 2025 to 40.

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