{
    "success": true,
    "data": {
        "id": 1823594,
        "msgid": "after-msci-imd-now-downgrades-indonesias-global-competitiveness-1782382828",
        "date": "2026-06-25 11:29:10",
        "title": "After MSCI, IMD Now Downgrades Indonesia's Global Competitiveness",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's global competitiveness ranking has plummeted to 58th out of 70 economies in the IMD World Competitiveness Ranking 2026, down sharply from 27th in 2024. The decline is attributed to weakening business efficiency, government efficiency, and infrastructure quality. The report underscores that institutional credibility, rather than just cost or innovation, now defines a nation's competitive edge.",
        "content": "<p>Negative sentiment continues to mount for Indonesia\u2019s investment and\nbusiness climate. Following MSCI\u2019s threat to downgrade the Indonesian\nmarket from emerging market to frontier market status, the country\u2019s\nglobal competitiveness has now fallen further. Indonesia\u2019s position in\nthe global competitiveness ranking has weakened again. Based on the IMD\nWorld Competitiveness Ranking 2026, Indonesia is ranked 58th out of 70\ncountries and economies assessed. This position is down from the\nprevious year\u2019s ranking of 40th. Compared to 2024, the decline is even\nsteeper, dropping 31 places from 27th to 58th. The data comes from the\nIMD World Competitiveness Yearbook 2026, published in June 2026 by the\nIMD World Competitiveness Center in Switzerland. Amid increasingly\nfierce global competition, Singapore once again claimed the top spot,\nfollowed by Hong Kong, Switzerland, Taiwan, and the United Arab\nEmirates. Within Southeast Asia, Indonesia trails Malaysia (15th),\nVietnam (27th), and Thailand (45th). The IMD report indicates that the\ndecline in Indonesia\u2019s competitiveness was primarily influenced by\nweakening business efficiency and infrastructure quality. In the\nBusiness Efficiency factor, Indonesia ranked 38th globally, down from\n23rd in 2024. Meanwhile, the Infrastructure factor fell to 58th from\n52nd previously. Government performance also experienced a sharp\ndecline. The Government Efficiency factor slumped from 14th in 2024 to\n50th in 2026. On the other hand, the Economic Performance factor\nremained relatively stable at 24th globally. At a more detailed level,\nseveral Indonesian indicators remain in the lower tier among the 70\ncountries assessed. These include productivity and efficiency (53rd),\nfinance (51st), management practices (55th), attitudes and work values\n(53rd), and education (63rd). Furthermore, the quality of scientific and\ntechnological infrastructure remains a challenge, with scientific\ninfrastructure ranked 48th and technological infrastructure ranked 47th.\nDespite the overall ranking decline, Indonesia still possesses several\ncompetitive indicators, including prices (10th), taxation (12th), the\nlabour market (21st), and the domestic economy (24th). In its country\nprofile, IMD identified key challenges for Indonesia\u2019s competitiveness\nin 2026, including the threat of global economic confrontation to\nnational energy security, relatively stagnant economic growth,\nadjustments to government budget allocations, limitations in\ninfrastructure and human resource competencies, and limited sources of\nfinancing. Arturo Bris, Director of the IMD World Competitiveness\nCenter, assessed that economic competitiveness is no longer solely\ndetermined by production costs, market size, or innovation. \u2018Economic\ncompetitiveness in 2026 is no longer primarily a contest of cost,\neconomies of scale, or even innovation. Competitiveness is now a contest\nof institutional credibility,\u2019 Bris stated. According to him, in an\nincreasingly fragmented world, legal certainty, enforceable government\ncommitments, and the capacity of state institutions are the main factors\ndetermining competitiveness. Bris added that a country does not become\ncompetitive by having more regulations, but when economic actors believe\nthat contracts are enforced, public decisions can be reviewed,\ncorruption is curbed, and administrative authority is exercised\ntransparently. The IMD World Competitiveness Ranking 2026 measures the\ncompetitiveness of 70 countries and economies using 341 indicators. The\nassessment is divided into four main factors: Economic Performance,\nGovernment Efficiency, Business Efficiency, and Infrastructure. These\nfour factors are further broken down into 20 sub-factors, each weighted\nat 5% of the final score. Two-thirds of the assessment comes from\nstatistical data collected from various international, national, and\nregional sources, while the remaining third comes from an Executive\nOpinion Survey measuring business actors\u2019 perceptions of each country\u2019s\ncompetitiveness. In 2026, IMD received over 6,900 survey responses from\n70 countries and economies. For Indonesia, data collection was conducted\njointly with the Management Institute of the Faculty of Economics and\nBusiness, University of Indonesia, and NuPMK Consulting. Overall, the\nIMD report shows that Indonesia\u2019s main challenge no longer lies in\nmacroeconomic stability. Improving institutional quality, business\nefficiency, infrastructure development, and human resource quality are\ncrucial factors for strengthening Indonesia\u2019s long-term\ncompetitiveness.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/after-msci-imd-now-downgrades-indonesias-global-competitiveness-1782382828",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}