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View all search resultsRI lost 21 spots in competitiveness ranking under Prabowo's tenure
Indonesia's competitiveness was ranked 27th globally in 2024 then nosedived to 48th this year thanks to worsening business and government efficiency.
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Skyscrapers are seen from the observation deck of the National Monument (Monas) in Central Jakarta on June 7, 2026. (AFP/Yasuyoshi Chiba)
I
ndonesia has gone down by 21 positions in the latest World Competitiveness Ranking from the peak it reached two years ago due to worsening government and business efficiency as well as infrastructure since President Prabowo Subianto took office.
The archipelago is now ranked below its Southeast Asian peers namely the Philippines, Thailand, Vietnam, Malaysia and Singapore, who were ranked 47th, 26th, 27th, 15th and 1st, respectively.
The Institute for Management Development (IMD) recorded that the archipelago reached its best performance in 2024 when it secured the 27th global rank, only to nosedive to the 40th the following year and 48th this year, according to IMD’s 2026 ranking released on June 18.
The report wrote that “economies boasting credible institutions are better positioned to tackle today’s volatile and fragmented world”, signalling a shift from the traditional emphasis on cost, scale and output.
Arturo Bris, director of Switzerland-based IMD’s World Competitiveness Center, said geopolitical conditions had been worsening and global fragmentation was increasing, making institutional strength ever more important.
“Nations with their own tried and tested, credible institutions gain an advantage in this context because, as the international systems cease to serve so many national needs, businesses can carry on as usual,” said Bris.
Indonesia’s economic performance, one of the four main gauges in the ranking, remained on the same spot in the past two years at the 24th position, a significant jump from 42nd in 2022.
