Research Of The Most Competitive Countries In The World 2023 Released, Happy Indonesia Results?

Illustration of competitive countries (Unsplash)

YOGYAKARTA The Swiss Institute for Management Development (IMD) released the results of the 2023 World Competitiveness Ranking research or the world's most competitive country in 2023. In this research, IMD collaborates with the Faculty of Business Economics Management Institute, University of Indonesia (FEB UI).

In the research, it was also mentioned Indonesia's competitive level of other countries, including Japan and India. For more details, see the following article.

Citing the IMD website, the World Competitiveness Ranking is an annual report that discusses the country's competitiveness. In the report, a comparison of trends, statics and survey data is carried out based on research. Research activities include analysis and ranking countries based on their way of managing their competence in order to achieve the value of creation in the long term.

Based on research results from the 2023 World Competitiveness Ranking IMD-FEB UI, the first rank in the most competitive country was occupied by Denmark which got a score of 100. Furthermore, Ireland (99.71), Switzerland (99.31), Singapore (97.44), and the Netherlands were in fifth position (95.58).

As is known, IMD research was carried out by including 64 countries including Indonesia. Based on reports, Indonesia's competitiveness ranking in 2023 is ranked 34th out of a total of 64 countries in the world. This position turned out to be quite good because in 2022, Indonesia was ranked 44th.

Meanwhile, in 2023, Indonesia's position as the most competitive country managed to surpass several other countries, namely Japan, which sits at 35th position, India at 40th position, and the Philippines at 52nd.

LM FEB UI Executive Director Willem Makaliwe said that the basis for the increase in Indonesia's ranking was the analysis of Indonesia's economic performance data until 2022 and the assessment of business actors on the environmental conditions of the business they were facing.

The self-competitiveness assessment method is based on 4 component assessments, namely as follows.

Indonesia's economic performance increased, in the previous year, Indonesia's original position was 42 to 29 in 2023 or an increase of 13 rankings. In this criterion, the strength is GDP growth, fuel price stability, and export and investment growth. While the weak in this component is the decline in employment opportunities.

The efficiency of the Indonesian government was originally ranked 35th and only increased to 31 this year. This rating increase is not very significant because it only increased by 4 places. In this component, the factors that become an advantage are the effectiveness of the state budget, the procedure for starting a business, and the ratio of foreign currency reserves per capita. Meanwhile, the drawbacks are tax revenue, income distribution, and unstable political situations.

In the previous year, Indonesia's business efficiency ranking was ranked 31, but in 2023 it was ranked 20. This increase is enough because it managed to jump as many as 11 rankings. The factors that become the strength of this component are the growth of the workforce, professional remuneration, labor productivity level, and access to financial services.

Indonesia's infrastructure improvement has experienced the lowest increase because it has only managed to rise by 1 rank. In the previous year, Indonesia was in the 52nd position, while this year it only rose to 51.

In this component, the factors that add strength are the component of cellular telecommunications costs, the ratio of EBT utilization, the maintained number of patents, the distribution of health care facilities, the ratio of computer users, and the effectiveness of spending in the health-education sector.

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