Latest report of World
Economic Forum (WEF), Global Competitiveness Report 2013-2014, revealed that
Indonesia is a country with a quite fantastic increase in competitiveness
ranking. According to the WEF report, Indonesia’s competitiveness ranking is
now on the 38th position in the world, an increase of 12 ranks from
a year earlier at 50th position. In the report, WEF said that after
three years of decline, Indonesia improved and was listed as a country with the
biggest growth this year.
Cabinet Secretary, Dipo Alam, in Jakarta (Friday,
September 6), explained that the performance achievement shows that the
policies, programs, and directions of development conducted by the government so
far has been true and correct. So it receives appreciation from investors and
business community surveyed by WEF. According to him, the decline in Rupiah
exchange rate was a global volatility, which is not only felt by Indonesia but
also occurred in other countries. “Our competitiveness ranking increased, but
one thing which is no less important is to maintain the trust of investors and
the business here”, he said.
He said that one of the factors that indicate the
increase is improvement in infrastructure sector which includes road
infrastructure, the quality of railway transportation, port and air
transportation. Indonesia’s infrastructure score, he said, in 2008 only reached
3. Then in 2009 rose to 3.2, increased to 3.6 in 2010, and reached 3.8 in 2011.
Even though it fell to 3.7 in 2012, this year infrastructure score strengthen
to 4.2.
According to him, Indonesia is not yet able to occupy the
Top 10 position which is occupied by Switzerland, Singapore, Finland. Even so, he
said, there are many other countries which experienced decrease in
competitiveness level. Introduced by World Economic Forum in 2004, the Global
Competitiveness Report is based on the Global Competitiveness Index (GCI) which
indicates the economic competitiveness of a country based on institutional
performance, policies and factors that determine the productivity level of a
country.
GCI score is calculated by collecting country level data
covering 12 categories/pillars of competitiveness, namely institutions;
infrastructures; macroeconomic environment, health and elementary education;
higher education and training; market efficiency; labor market efficiency;
financial market development; technological preparedness; market size; business
sophistication; and innovation.
Competitiveness should be a serious concern of all
shareholders. Otherwise, the Indonesian economy will be less than its
neighboring countries. For example, beyond economists’ predictions, the
development of the Philippines’ economy showed impressive result. The
Philippines achieved the fastest growth target at 7.8% in the first quarter of
2013, with the support of positive momentum.
The positive momentum occurred with the Philippines
government policies that encourage consumption, investment and government
spending. Compared to Indonesia’s economic growth, it is equally positive.
Target of Indonesia’s economic growth (GDP) this year is at 6.3%. This
projection is relatively the same with the average growth in the Philippines
when seen from the growing complexity of Indonesian economic growth.
Of
course, the government did not remain silent to maintain the competitiveness of
this country. One of the attempts is through fuel subsidy budget policies which
will be diverted to infrastructure improvement. The government’s commitment to
focus on infrastructure improvement is to maintain the country’s level of
competitiveness. Indonesia should also anticipate earlier, so that this nation
does not just play a role as a potential market in the ASEAN Economic Community.
Business News - September 11, 2013
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