Indonesia's Competitiveness Plummets to 48th Place

The International Institute for Management Development (IMD) has placed Indonesia at 48th out of 70 countries in the World Competitiveness Ranking 2026. Indonesia’s competitiveness position fell eight places compared to the previous year. In its report, the IMD cited a number of challenges facing Indonesia this year. “Global economic confrontation threatens national energy security; fairly stagnant economic growth; adjustments to government budget allocations; inadequate infrastructure and human resource competencies; limited availability of funding sources,” stated the IMD World Competitiveness Booklet 2026, quoted on Thursday, 25 June 2026. There are four main criteria assessed by the IMD: economic performance, government efficiency, business efficiency, and infrastructure. Indonesia ranked 24th with a score of 59.9 for economic performance. For government efficiency, Indonesia was ranked 38th with a score of 55.1. Indonesia then ranked 50th with a score of 40.9 for business efficiency. Meanwhile, for infrastructure, Indonesia scored 31.9 and was ranked 58th. By region, Indonesia occupied the second lowest position, ranking 14th out of 15 countries in the Asia Pacific. Based on populations above 20 million, Indonesia ranked 21st out of 32 countries. Indonesia’s global competitiveness ranking is the lowest in the last five years. In 2022, Indonesia was ranked 44th. The following year, Indonesia rose to 34th. Indonesia’s competitiveness position had sharply increased to 27th in 2024. However, in 2025, Indonesia’s position fell to 40th.