Indonesia's Competitiveness Ranking Falls, Investors Become Cautious
Less than encouraging news has emerged from Indonesia's economic sector. According to the latest IMD World Competitiveness Ranking 2026 report, Indonesia's competitiveness position has experienced a significant decline, dropping eight places compared to the previous year.
This decline in ranking has become a serious concern for economic observers in the country. This global competitiveness index is typically used by international investors as one of the primary benchmarks before deciding to invest capital in a country. With a lower position, Indonesia now faces greater challenges in attracting foreign investment.
Several factors influencing this assessment include government efficiency, business performance, and supporting infrastructure. This decline has sparked concerns that the investment climate in Indonesia may be perceived as less competitive compared to neighboring countries in the Southeast Asian region.
Experts suggest that the government should immediately evaluate existing economic policies. Improvement measures in the bureaucracy and ease of doing business sectors are considered crucial to restoring investor confidence so that Indonesia's competitiveness position can improve again in the future.