{
    "success": true,
    "data": {
        "id": 1828776,
        "msgid": "competitiveness-ranking-drops-government-to-improve-business-efficiency-and-accelerate-deregulation-1782654612",
        "date": "2026-06-28 16:57:17",
        "title": "Competitiveness Ranking Drops, Government to Improve Business Efficiency and Accelerate Deregulation",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's government is accelerating deregulation and business efficiency reforms after the country's IMD World Competitiveness Ranking fell eight places to 48th in 2026. The decline was primarily driven by weaknesses in business efficiency, including management practices and productivity. Officials and economists stress that regulatory certainty and bureaucratic reform are crucial to restoring investor confidence and avoiding a prolonged period of moderate growth.",
        "content": "<p>The government still has a number of tasks in boosting investment\nactivity, meaning technical regulations related to the business world\nneed to be immediately improved and refined. Responding to this issue,\nthe government stated it is accelerating deregulation measures and\nimproving business efficiency, particularly after Indonesia\u2019s ranking in\nthe IMD World Competitiveness Ranking 2026 dropped eight places, from\n40th in 2025 to 48th. The government recognises that business certainty\nand regulatory simplification are important factors in restoring\ninvestor confidence. Based on the International Institute for Management\nDevelopment (IMD) ranking results, one of the main causes of the decline\nstems from the business efficiency component. In this component, the\nlabour market is ranked 21st, finance is at 51st, attitudes and values\nare at 53rd, productivity and efficiency are at 53rd, and management\npractices are at 55th. Secretary of the Coordinating Ministry for\nEconomic Affairs, Susiwijono Moegiarso, said the IMD assessment provides\nimportant input for the government to improve the business climate and\nincrease business efficiency. \u201cWhat has really dropped is business\nefficiency, which is indeed our concern, matters of deregulation,\nmatters of business certainty, and we must continue to convince\ninvestors,\u201d Susiwijono said at the Coordinating Ministry for Economic\nAffairs office. According to Susiwijono, improving business efficiency\nwill strengthen investor confidence in Indonesia\u2019s business climate.\nTherefore, the Coordinating Ministry for Economic Affairs continues to\ncoordinate with the Ministry of Investment and Downstreaming\/Investment\nCoordinating Board (BKPM) to overhaul various regulations, including\nsimplifying the business licensing process. \u201cThis means we still need to\nconvince the business world again about the various efforts being made\nby the government,\u201d he added. To support these efforts, the government\nhas tasked the Task Force for the Acceleration of Government Programmes\nto Support Increased Economic Growth (Satgas P3-MPPE) and the Task Force\nfor the Acceleration of Strategic Government Programmes (Satgas P2SP)\nwith creating a more conducive, transparent, and responsive business\nclimate. The P2SP Task Force is tasked with resolving various investment\nbarriers (debottlenecking) through weekly coordination meetings\ninvolving business actors and relevant ministries\/agencies to accelerate\nthe resolution of problems on the ground. \u201cThis is quite effective,\nmeaning it has now become a mainstay for complaints if the business\nworld has tried to submit them and there is no solution yet, they go\nthere. And the variety of problems ranges from technical issues for just\na few companies to policy matters discussed there,\u201d said Susiwijono.\nMeanwhile, the Head of the Macroeconomics and Finance Centre at the\nInstitute for Development of Economics and Finance (Indef), Rizal\nTaufikurahman, assessed that the decline in Indonesia\u2019s competitiveness\nranking from 27th in 2024 to 48th in 2026 reflects the weakening of\nseveral domestic economic fundamentals, especially related to government\nefficiency, business efficiency, infrastructure quality, and regulatory\ncertainty. According to him, this condition also shows that Indonesia\u2019s\neconomic growth has not been fully supported by increased productivity\nand innovation. High logistics costs, slowing private investment, uneven\nhuman resource quality, and increasing global uncertainty have also\nsuppressed perceptions of Indonesia\u2019s competitiveness compared to\ncompeting countries in the region. Rizal also mentioned that the decline\nin the competitiveness ranking could potentially affect investment flows\nand job creation because it may reduce long-term investment interest,\nslow business expansion, and restrain national productivity growth.\n\u201cTherefore, improving the investment climate, deregulation,\nstrengthening human resource quality, and increasing bureaucratic\nefficiency are key so that Indonesia does not get trapped in moderate\ngrowth of around 5% and can once again improve its competitiveness at\nthe global level,\u201d he said.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/competitiveness-ranking-drops-government-to-improve-business-efficiency-and-accelerate-deregulation-1782654612",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}