Indonesia’s Impressive Leap in Global Competitiveness
In 2024, the global economy is experiencing ups and downs, with a strong dollar impacting many countries. Amid this turbulence, Indonesia stands out by climbing from 34th to 27th place in the World Competitiveness Rankings (WCR), showcasing a promising future for its business environment.
A Closer Look at Indonesia’s Progress
Indonesia has surpassed regional peers like Malaysia and Japan. Arturo Bris, Director of the World Competitiveness Center, credits this to Indonesia’s improved economic performance, increased capital attraction, and GDP growth. Key areas of improvement include:
- Business efficiency: Up from 20th to 14th
- Government efficiency: Up from 31st to 23rd
- Economic performance: Up from 29th to 24th
Infrastructure remains a challenge, but the government is optimistic that higher competitiveness will attract more foreign investors.
Standing Out in Asia
Indonesia’s progress contrasts with the struggles of some Asian counterparts. Malaysia has slipped due to a weak currency and political instability, while Japan lags in technological adoption for businesses. Indonesia’s rapid advancements make it an increasingly attractive place for business operations.
Overcoming the Challenge of a Strong Dollar
Despite the global economic slowdown and a strengthening dollar, Indonesia is taking steps to mitigate these challenges. The country’s robust domestic market, driven by a growing middle class, helps insulate the economy from external shocks. Foreign direct investment (FDI) also plays a crucial role, supporting economic growth, job creation, and innovation.
A Bright Future for Indonesia
Indonesia’s leap in the World Competitiveness Rankings indicates significant improvements in its business environment. With a strong economy, increasing investor interest, and better job training, the country is poised for continued growth. This progress presents numerous opportunities for foreign investors.
If you’re interested in opening a business or investing in Indonesia, contact Seven Stones Indonesia. We specialize in assisting foreign businesses looking to operate in the country. Reach out via email, WhatsApp, or our inquiry form, and let’s discuss how we can help your business succeed in Indonesia.