Mon, 13 Dec 2010


VIVAnews - A small number of foreign investment agencies figure that Indonesia may emerge as the next economic giant after China and India. Nevertheless, an economist, A Prasetyantoko, writes in his book "Ponzi Ekonomi" that the country has in fact poor competitiveness.

Prasetyantoko revealed that although some improvements have been made, Indonesia's Global Competitiveness Index (GBI) was only rated at 54 based on the Competitiveness Report 2009-2010. It 's clear that the nation is way inferior than Singapore (3), Malaysia (24), China (29), Brunei Darussalam (32), and Thailand (36).

"There are three factors that help lower Indonesia's competitiveness," he said. First on the list is the minimum availability of such infrastructures as harbors and roads. The next issue is concerned with the poor quality of people's health.

In fact, Indonesia is listed world's top countries ranked in terms of high infant mortality rate and malaria cases. Moreover, Indonesia is still under on-going process of patching up with the latest inventions in technology.

For the time being, the country sees a transition from factor-driven economic stage to efficiency-driven economy.