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RI drops in doing-business ranking as reform lags, election looms
In a ranking of 82 countries, Indonesia has dropped to 58th spot as a place to conduct business, scoring poorly in the assessments of political effectiveness and infrastructure, which suggests that structural reforms pushed by the government have had little effect so far in improving the business environment.
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A protester runs toward police officers who stand guard on motorcycles during a clash in Jakarta on Oct. 13, 2020. A series of demonstrations took place across the country following the House of Representatives’ passage of the job creation bill into law. (JP/Seto Wardhana)
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ndonesia has dropped in a ranking of countries as places to conduct business, scoring poorly in the assessments of political effectiveness and infrastructure, which suggests that structural reforms pushed by the government have had little effect so far in improving the business environment.
Released on April 13, the latest edition of the study conducted regularly by the Economist Intelligence Unit (EIU), showed that Indonesia’s global ranking slipped by three places to the 58th spot out of 82 countries assessed.
Indonesia ranks far below regional peers like Singapore, which sits at the very top, as well as Malaysia in 26th place, Thailand in 33rd and Vietnam in 45th.
“[Indonesia] scores particularly poorly in political effectiveness and infrastructure. Indonesia's political environment is problematic,” EIU country forecast manager Prianthi Roy told The Jakarta Post on April 13.
Roy said that President Joko “Jokowi” Widodo would “provide a steady hand” until his second term ends in 2024, but his efforts to push for political reforms would be hamstrung by an “unwieldy coalition” with highly diverse views.
This situation, said Roy, would be exacerbated after Jokowi leaves office, given that there was no presidential candidate in sight who was as popular across political parties and the public as the incumbent.
“Some senior politicians would prefer a return to a patronage-based system, and others seek to restrict social freedoms by promoting a stricter form of Islam,” said Roy.
