Analysts warn that Indonesia not yet efficient enough<\/p>\n
JAKARTA (JP): Indonesians should not be lulled into
\ncomplacency following the country's leap from 30th to 15th place
\nin a report on the world's most competitive economies, analysts
\nsay.<\/p>\n
Director of Prasetia Mulya business institute Djisman
\nSimanjuntak said improvements in economic efficiency were still
\nneeded despite the ranking on the Global Competitiveness Report
\n1997.<\/p>\n
\"The ranking upgrade is good news, but it doesn't show any
\nimprovement in our exports and services,\" Simanjuntak was quoted
\nby Antara as saying over the weekend.<\/p>\n
He said the report by the Geneva-based World Economic Forum
\nwas based on the country's \"input\", instead of \"output\" or
\nexports.<\/p>\n
\"If the survey's criteria is based on our ability to attract
\nforeign investment, instead of to reduce imports and increase
\nexports and services, then (Indonesia's ranking) is correct,\" he
\nsaid.<\/p>\n
He acknowledged local and foreign investment in the country
\nhad increased in recent years.<\/p>\n
Foreign investment rose to US$6.4 billion last year from
\nUS$4.2 billion in 1995. The amount is expected to increase again
\nthis year with improvements in infrastructure and human
\nresources, he said.<\/p>\n
The country has not shown a significant increase in growth of
\nexport and service sectors in the past three years, he said.<\/p>\n
\"This has caused a continued increase in the current account
\ndeficit during the past three years.\"<\/p>\n
To support the ranking upgrade, Djisman said the government
\nmust encourage investors to focus on non-oil commodity exports
\nand services, as well as reduce imports.<\/p>\n
He also said the government should stop introducing
\ninconsistent policies, including the controversial tax exemption
\non Indonesia's national car.<\/p>\n
President of PT Aspecindo Kreasi Hartojo Wignjowijoto said the
\nrating was not an accurate gauge of competitiveness in the
\ncountry.<\/p>\n
The rating upgrade did not reflect advancements in efforts to
\nmake the local economy more equitable, he said, adding that it
\nwas still controlled by a handful of people and business groups.<\/p>\n
\"The rating improvement should remind us that the equitable
\naspect of the country's economy has not been treated
\nefficiently,\" he told the Bisnis Indonesia daily.<\/p>\n
Indonesia's jump of 15 places was the largest of any of
\ncountries ranked in the top 20.<\/p>\n
The rating is based on a country's ability to maintain its
\neconomic growth rate through its policies as well as established
\ninstitutions.<\/p>\n
The quality of infrastructure, technology and business
\nmanagement is also counted in the evaluation. (das)<\/p>\n
Table: Most competitive economies<\/p>\n
1997 1996
\n Singapore 1 (1)
\n Hong Kong 2 (2)
\n United States 3 (4)
\n Canada 4 (8)
\n New Zealand 5 (3)
\n Switzerland 6 (6)
\n United Kingdom 7 (15)
\n Taiwan 8 (9)
\n Malaysia 9 (10)
\n Norway 10 (7)
\n Luxembourg 11 (5)
\n Holland 12 (17)
\n Chile 13 (18)
\n Japan 14 (13)
\n Indonesia 15 (30)
\n Ireland 16 (26)
\n Australia 17 (12)
\n Thailand 18 (14)
\n Finland 19 (16)
\n Denmark 20 (11)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/analysts-warn-that-indonesia-not-yet-efficient-enough-1447893297",
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