2025 Regional Competitiveness Index to Strengthen National Competitiveness

“Collaboration between the central government and regional authorities is crucial to ensure that innovation can flourish and have a real impact on development,” he said.

The Minister of National Development Planning/Head of the National Development Planning Agency (Bappenas), Prof. Rachmat Pambudy, affirmed the importance of the Regional Competitiveness Index as a strategic instrument to strengthen the foundation of national development.

“The competitiveness index is not just a number or a ranking, but a reflection of the collective capacity of the nation, from the highest leaders to the lowest levels of society, in facing increasingly fierce global competition,” he said.

Learning from past experiences, Rachmat Pambudy cited the example of when the agricultural sector was unable to compete, the evaluation should not only focus on the farmers, but also on the entire support ecosystem, from extension workers and researchers to policymakers. The same principle applies in the context of current national development.

Indonesia’s stable economic growth of around five per cent is not enough to lift Indonesia out of the middle-income trap.

“To achieve the vision of a Golden Indonesia 2045, economic growth needs to be pushed higher, but it must also be of high quality,” he said.

Growth alone is not enough. According to him, equity, job creation, and poverty reduction must go hand in hand. He highlighted the existence of regions with high growth but also with large disparities. “This is a condition that cannot be allowed to continue,” he said.