Cumbersome bureaucracy undermines competitiveness<\/p>\n
Tony Hotland, The Jakarta Post, Jakarta<\/p>\n
Indonesia's global competitiveness has improved over the past
\nyear, and yet it is battered by an inefficient bureaucracy,
\ninconsistent policies and corruption, according to the World
\nEconomic Forum (WEF).<\/p>\n
The forum's latest global competitiveness report, released
\nhere on Thursday, shows that Indonesia ranks 69th out of 104
\ncountries surveyed this year in terms of growth competitiveness
\nand 44th out of 103 in terms of business competitiveness.<\/p>\n
This is an improvement from last year, when Indonesia's growth
\ncompetitiveness ranked 72nd and business competitiveness 60th,
\nand also marks the first improvement recorded since Indonesia
\njoined the WEF in 1996.<\/p>\n
The WEF is an independent, international organization that
\ngroups together corporate leaders and provides a platform for
\naddressing global issues.<\/p>\n
Tulus Tambunan, head of research at the Indonesian Chamber of
\nCommerce and Industry (Kadin), said a quick assessment of the
\nreport showed that the considerably better security condition and
\nhigher growth rate contributed to Indonesia's improved standing.<\/p>\n
The Growth Competitiveness Index examines three macro factors
\ncritical to economic growth: quality of macroeconomic
\nenvironment, public institutions and technological development.<\/p>\n
Meanwhile, the complementary Business Competitiveness Index
\nevaluates two areas critical to the business climate: the
\nsophistication of the operating practices of companies and the
\nquality of the business environment in each country.<\/p>\n
Aside from the inefficient bureaucracy, inconsistent policies
\nand corruption that top the list of most problematic factors, the
\nWEF report also pointed to inadequate infrastructure, tax rates,
\ntax regulations, access to financing, restrictive labor
\nregulations, crime and theft, government instability and poor
\nwork ethics as inhibitive for doing business in Indonesia.<\/p>\n
Tulus said the report only confirmed the conditions that had
\nshackled businesses here.<\/p>\n
The cumbersome bureaucracy, for example, provide a loophole
\nfor charging foreign and domestic investors illegal fees, which
\ncould comprise 25 percent to 30 percent of production costs.<\/p>\n
Inconsistent policies have also cost local and foreign
\nbusinesses alike, with overlapping regulations making it
\ndifficult for businesses to make long-term plans and strategies,
\nTulus said.<\/p>\n
\"For businessmen here, these problems are the main factors
\nthat have bogged them down, and the government must resolve these
\nissues quickly,\" he said.<\/p>\n
While it has shown initial improvement, Indonesia still has a
\nlong way to go before it can vie with other Asian countries in
\nterms of growth competitiveness. Neighboring Singapore, for
\nexample, ranks 7th, Malaysia at 31st, Thailand at 34th, China at
\n46th and India at 55th.<\/p>\n
In terms of business competitiveness, Indonesia lags far
\nbehind Singapore, ranked 10th, followed by Hong Kong at 11th,
\nMalaysia at 23rd, India at 30th and Thailand at 37th.<\/p>\n
The world's top five in growth competitiveness are Finland,
\nthe United States, Sweden, Taiwan and Denmark, while leading in
\nbusiness competitiveness are the United States, Finland, Germany,
\nSweden and Switzerland.<\/p>\n
Competitiveness Ranking<\/p>\n
Growth Business<\/p>\n
1. Finland 1. U.S.<\/p>\n
2. U.S. 2. Finland<\/p>\n
3. Sweden 3. Germany<\/p>\n
4. Taiwan 4. Sweden<\/p>\n
5. Denmark 5. Switzerland<\/p>\n
6. Norway 6. U.K.<\/p>\n
7. Singapore 7. Denmark<\/p>\n
8. Switzerland 8. Japan<\/p>\n
9. Japan 9. Netherlands<\/p>\n
10. Iceland 10. Singapore<\/p>\n
21. Hong Kong 11. Hong Kong<\/p>\n
29. Korea 23. Malaysia<\/p>\n
31. Malaysia 24. Korea<\/p>\n
34. Thailand 30. India<\/p>\n
46. China 37. Thailand<\/p>\n
55. India 44. Indonesia<\/p>\n
69. Indonesia 70. Philippines<\/p>\n
76. Philippines 79. Vietnam<\/p>\n
102. Bangladesh 95. Bangladesh<\/p>\n
104. Chad 103. Angola<\/p>\n
Source: WEF Global Competitiveness Report<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/cumbersome-bureaucracy-undermines-competitiveness-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }