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View all search resultsThe Trade Ministry has rolled out a wide-ranging regulatory reform package aimed at easing import restrictions and cutting red tape, in a bid to revitalize the manufacturing sector, respond to global trade pressures amid United States (US)’ tariff hikes, and bolster Indonesia’s competitiveness as it eyes membership in the Organisation for Economic Co-operation and Development (OECD).
Indonesia’s position in the World Competitiveness Ranking (WCR) has dropped significantly, according to the World Competitiveness Yearbook (WCY) 2025, released in June by the International Institute for Management Development (IMD). The annual ranking evaluates 69 economies using global, regional, and national statistics, as well as surveys of corporate executives. The report highlights Indonesia’s sharp decline across key competitiveness indicators, amid ongoing economic headwinds.
“The problem is not always [influxes of foreign goods]. The problem is more fundamental; it’s capital expenditure [capex]. If an industry does not fix its capex, it will be automatically outcompeted,” the coordinating economic minister said on Monday.
The prospect of transforming ASEAN into a global production center is plausible, especially because of the exceptional competitiveness of regional commodities, particularly in the food and fisheries sectors.
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