Indonesia’s Competitiveness Ranking Increases, Government Continues Efforts to Maintain National Economy

Jakarta – Indonesia’s competitiveness ranking has experienced a significant increase, based on the 2024 World Competitiveness Ranking (WCR) report, which places Indonesia in 27th position in the world. Economist from the Institute for Development of Economics and Finance (INDEF), Tauhid Ahmad, believes that this increase reflects the government’s hard efforts to maintain and improve national economic conditions.

Tauhid Ahmad stated that in general, the Indonesian economy is in a stable condition with a growth rate of around 5% in aggregate.

“The economic situation is currently in a stable position without significant shocks, indicating that the Indonesian economy is in a safe condition,” he said.

He added that in the first quarter, the economy was supported by increased government spending and investment, which significantly contributed to national economic resilience. However, Tauhid also reminded of the challenges that might arise in the next quarter, especially those related to people’s purchasing power.

“The main challenge going forward is to keep people’s purchasing power strong, which will be the key to maintaining economic stability,” he added.

The increase in Indonesia’s competitiveness ranking reflects significant changes made by the government from year to year.

“We need to appreciate together that the government’s efforts have shown improvements in various economic sectors,” said Tauhid.

He also highlighted that this increase occurred in the economic performance sector, especially the domestic market, prices and government effectiveness.

According to him, the existence of the Job Creation Law also plays an important role in creating a more competitive labor market, which ultimately encourages increased national competitiveness.

“The Job Creation Law has been proven to create a more competitive labor market, which is very helpful in improving our economic performance,” explained Tauhid.

Furthermore, Tauhid explained that the Job Creation Law not only had a positive impact on the labor sector, but also created a more conducive business environment.

“With simpler and more flexible regulations, foreign and domestic investment increases, which in turn strengthens our economic structure,” he added.

From the domestic market side, this increase can be seen from the increase in the consumer confidence index and growth in retail sales.

“Consumers feel more confident in spending their money, which shows that they have confidence in economic stability,” explained Tauhid.

According to him, this is a positive indication for long-term economic growth.

The Indonesian government continues to be committed to maintaining national economic stability and increasing the country’s competitiveness in the international arena. It is hoped that the strategic steps that have been taken, such as bureaucratic reform, infrastructure improvements and appropriate fiscal policies, can continue to encourage sustainable and inclusive economic growth, as well as strengthen Indonesia’s position on the global stage.

Apart from that, the government is also focusing on developing human resources by improving the quality of education and vocational training.

“Improving the quality of the workforce is the key to maintaining and increasing our competitiveness,” said Tauhid.

Improved training programs and wider access to education are expected to produce a workforce that is more skilled and ready to compete in the global market. On the other hand, the government also continues to strive to improve effectiveness and efficiency in government administration.

“By improving bureaucratic efficiency, we can create a better business environment and attract more investment,” added Tauhid.

He also emphasized the importance of transparency and accountability in government to maintain public and investor trust. In closing, Tauhid Ahmad emphasized that although there has been much progress, there are still challenges that need to be faced.

“We must continue to work hard and innovate to ensure that the economic growth that has been achieved can be sustainable and provide benefits for all Indonesian people,” he concluded.

The Indonesian government will definitely be able to continue these efforts to maintain stability and increase economic competitiveness in the future.[]