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Jakarta Post

Infrastructure boosts Indonesia competitiveness

  • The Jakarta Post

    The Jakarta Post

Jakarta   /   Thu, September 5, 2013   /  08:53 am
Infrastructure boosts Indonesia competitiveness (Source: WEF report)

The implementation of infrastructure projects planned by the government still need to be worked on, following the Global Competitiveness Index (GCI) report published by the World Economic Forum stating that infrastructure in Indonesia is improving.

Indonesia'€™s ranking jumped 12 places to 38th with an index of 4.53 in the GCI after declining for three years in a row, thanks to infrastructure improvements.

'€œI'€™m happy that the ranking went up. But the reality is that we still need to improve,'€ said Indonesian Employer'€™s Association (Apindo) chairman Sofjan Wanandi on Wednesday.

'€œThe infrastructure projects [mentioned in the report] are still plans, we can enjoy the results in the next two to three years,'€ Sofjan added.

Infrastructure in the country, considered '€œlargely underdeveloped'€ in the GCI report 2012-2013, rose sharply to 61st from 78th as the report saw upgrades of roads, ports, water facilities and power.

'€œThat'€™s [because of] the vast upgrades, but we [who live] here see it differently,'€ said Sofjan.

The GCI, which is published annually by the World Economic Forum, included over 148 countries in 2013.

'€œInfrastructure, which includes basic requirement'€™s aspects, accounted for 40 percent of the total survey. Thus, the increase in the category of infrastructure could bring up Indonesia'€™s ranking significantly,'€ said National Development Planning Minister Armida Alisjahbana.

'€œ[People] are starting to feel the effect, after [the government] started to improve infrastructure nationwide over the past three years,'€ said Armida.

As the government has been in the process of constructing better infrastructure throughout the country, it also needs to address the infrastructure of smaller regions in the future, according to Armida.

'€œOtherwise, they [the infrastructures] won'€™t be balance,'€ she said.

Besides infrastructure, Indonesia also increased the quality of public and private institutions by five places to the 67th.

'€œWe rose by 12 places, whereas the neighboring countries only increased a little,'€ Armida said.

Following Indonesia is the Philippines, which jumped from the 65th to the 59th because of the country'€™s effort to fight corruption. '€œIn the ethics and corruption category, the country has jumped from 135th in 2010 to 87th this year,'€ the report said, while In Indonesia bribery and security remained '€œthe dark spot'€.

On top of the index for five years in a row was Switzerland, as reported by Bloomberg. The country, which houses Nestle SA and Novartis AG, was credited for encouraging innovation and an efficient labor market. Its public institutions were the most effective and transparent and the economy is the most stable.

With good result in the GCI report, Armida expected similar grades from World Bank'€™s Ease of Doing Business Index survey, which was usually published in October. The survey ranked countries based on the most conducive place to the start a business.

'€œUsually our ranking is within the top 100, but over two years we have been making many breakthroughs,'€ she said. (nai)

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