Indonesia's global business competitiveness ranking falls

Indonesia's global business competitiveness has experienced a noticeable downturn.

According to the 2026 IMD World Competitiveness Ranking, the country has dropped to 48th place out of 70 economies.

Within the Asia-Pacific region, Indonesia now ranks 14th out of 15, trailing behind neighbors like Malaysia, Thailand, and Vietnam.

The IMD evaluates competitiveness across four pillars: economic performance, government efficiency, business efficiency, and infrastructure.

While Indonesia maintains strength in economic performance and price competitiveness, the overall ranking has been pulled down by structural challenges in infrastructure, government efficiency, and business operations.

Experts note that limited human capital, energy security concerns, and fiscal constraints are also hindering progress.

In response, the Indonesian government has launched a task force to identify bottlenecks and revitalize the business climate, focusing specifically on improving infrastructure and institutional credibility.

While challenges remain, Indonesia's strong tax policy and labor market stability provide a foundation for potential recovery as the country works to regain its competitive edge on the global stage.