http://www.thejakartapost.com/news/2012/06/01/ri-loses-shine-competitiveness-rankings.html
RI loses shine in competitiveness rankings
Veeramalla Anjaiah, The Jakarta Post, Jakarta | Fri, 06/01/2012 8:43 AM 
Indonesia may have the largest economy in Southeast Asia and the nation may be 
a member of the G20 – but it is not one of the most competitive economies in 
the world, according to the World Competitiveness Yearbook (WCY) rankings for 
2012.

Indonesia was ranked 42nd of a field of 59 countries in 2012, dropping from 
37th place in 2011, in this year’s report compiled by the IMD’s World 
Competitiveness Center in Switzerland.

Despite the government touting sustained 6 percent economic growth rates, 
rising exports, low inflation, large foreign exchange reserves, 
investment-grade ratings for its sovereign debt, increased foreign direct 
investment, low debt and declining poverty and unemployment, Indonesia’s new 
competitiveness ranking shows that the above trends have not contributed to 
national prosperity and that the fruits of economic growth have not trickled 
down to the masses.

The nation’s Southeast Asian neighbors Malaysia, in 14th place, and Thailand, 
in 30th place, both figured higher than Indonesia in the rankings. 

However, the nation’s standing in the World Economic Forum’s global competitive 
rankings was more impressive: Indonesia was ranked 44 of 239 countries in 
2010-2011 index, a huge jump from 69th place in 2005.

The leap followed President Susilo Bambang Yudhoyono’s personal interest in 
boosting perceptions of the nation’s competitiveness. 

In 2007, Yudhoyono asked the help of then Swiss president Micheline Calmy-Remy, 
whose country ranked number 1 in 2007, in improving Indonesia’s standing. 

The next year, Yudhoyono sent a team to Switzerland to study how a such small 
country could top the rankings. 

The team suggested several reforms, some of which were implemented with amazing 
results: There has been continuous improvement in Indonesia’s competitiveness 
rankings.

“We hope in the coming two or three years, Indonesia`s competitiveness rating 
will increase and come in at better than 40th” then trade minister Mari Elka 
Pangestu said on the sidelines of the World Economic Forum - East Asia (WEF - 
EA) meeting in Jakarta in 2011. 

The IMD center determines rankings by measuring how well nations manage 
economic and human resources to enhance prosperity. 

According to the IMD, one-third of the 329 ranking criteria came from an 
exclusive survey of more than 4,200 international executives, which reveals 
growing skepticism in some of the 59 economies on globalization and the need 
for economic reform.

Hong Kong was the most competitive economy in the world, scoring a perfect 100, 
according to the World Competitiveness Yearbook. Other top competitive nations 
include the US, Switzerland, Singapore, Sweden, Canada, Taiwan, Norway, Germany 
and Qatar.




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