Jakarta. Indonesia's competitiveness has dropped this year due to external pressures arising from trade, fluctuating exchange rates, and insufficient efforts to eradicate corruption, Switzerland-based International Institute for Management and Development, or IMD, revealed on Thursday (24/05).
Indonesia now ranks 43rd among 63 countries assessed for the World Competitiveness Yearbook ranking, down one place from the previous year.
Other countries showing signs of declining performance include Taiwan, Thailand, New Zealand and the Philippines, which fell seven places.
Singapore remained on the third position, Malaysia on 22nd, while Thailand dropped to the 30th position, three ranking points lower than last year.
Beside the problems with currency fluctuations, trade and corruption, IMD's report also mentions other challenges faced by Indonesia, including low contribution of its industries in the global value chain, gaps in infrastructure funding, and stagnant economic growth.
On the bright side, IMD noted several several improvements: expanded access to higher education, increased health care spending, business expenditure on R&D, value-added knowledge-and-technology intensive industries, lower youth unemployment, and a number of patents in force.
IMD, one of the world's top business schools, surveyed 6,371 respondents from 63 countries, based on 258 indicators and statistical data from local and international sources, as well as information from executives and experts.
The report used four key indicators to determine weaknesses and strengths of a country: its economic performance, infrastructure development, business efficiency and government efficiency.