Corruption undermines RI's competitiveness<\/p>\n
Sari P. Setiogi, The Jakarta Post, Jakarta<\/p>\n
Rampant corruption and ineffective bureaucracy are the two
\nmost important factors behind the country's low business
\ncompetitiveness index, according to the latest global
\ncompetitiveness report of the World Economic Forum (WEF).<\/p>\n
The other negative factors were political instability, limited
\naccess to credit, tax rulings and tax rates, said Tulus Tambunan
\nof the Institute for Economic Studies, Research and Development
\n(LP3E), which helped WEF in conducting the survey in Indonesia.<\/p>\n
He was speaking to the press on Friday to unveil the WEF
\nreport.<\/p>\n
According to the WEF report, Indonesia ranked 60 (out of a
\ntotal 102 countries surveyed) in terms of business
\ncompetitiveness. In comparison, neighboring Malaysia ranked 26,
\nSingapore 8, Thailand 32, while Vietnam is ranked 50.<\/p>\n
Finland was ranked the most competitive country in the world,
\nedging out the United States. Taiwan and Singapore were the
\nhighest-ranked Asian economies, in fifth and sixth place
\nrespectively.<\/p>\n
Surprisingly, despite its heady economic growth, China, now
\nNo. 44, fell nine places down the table because of a remarkable
\ndeterioration in the perceived quality of public institutions,
\nsaid the survey.<\/p>\n
WEF launched the business competitiveness index for the first
\ntime this year.<\/p>\n
Analysts have said weak investment activities in the country
\nand slow export performance have been linked to the above
\nproblems. They said that pushing investments and exports were key
\nto a stronger economic growth needed to create more jobs for the
\nmillions of unemployed.<\/p>\n
Meanwhile, in terms of the growth competitiveness index,
\nIndonesia is ranked 72nd, down from last year's 66, which is also
\nlower than the above mentioned countries.<\/p>\n
While some other countries benefited from their excellent
\nperformance in technology, macro economic environment and quality
\nof public institutions, Indonesia is relatively weak in these
\nareas.<\/p>\n
The Geneva-based WEF is an independent international
\norganization committed to improving the state of the world.<\/p>\n
Soy Pardede of the Indonesian Chamber of Commerce and Industry
\n(Kadin) said that the outcome of the survey would not have a
\nsignificant effect on investment and trade activities in
\nIndonesia as many of the business players here had been already
\naccustomed to the above negative factors.<\/p>\n
He said that Kadin had started a program to help create a
\nbetter business climate in the country such as through the recent
\nanticorruption campaign.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/corruption-undermines-ris-competitiveness-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}