RI`s global competitiveness index up 10 notches to 44th

Antara News, Thursday, September 9, 2010 23:38 WIB

Jakarta (ANTARA News) - Indonesia`s global competitiveness ranking (CGR) rose by 10 notches to 44th this year mainly because of improving macroeconomic indicators and health and primary education, according to a World Economic Forum (WEF) report.

Indonesia`s macroeconomic indicators rose from 52nd to 34th and health and primary eduction from 82nd to 62nd, the Indonesian ambassador/permanent representative to the UN, WTO and other international organizations in Geneva, Dian Triansyah Djani, said in a statement.

The country`s quality of overall infrastructure increased from 96th to 90th, intellectual property protection from 67th to 58th, national savings rate from 40th to 16th, effectiveness of anti-monopoly policy from 35th to 30th, and extent and effect of taxation from 22nd to 17th.

Meanwhile, the country`s business sophistication index also rose, including local supplier quantity from 50th to 43rd, value chain breadth from 35th to 26th, control of international distribution from 39th to 33rd, production process sophistication from 60th to 52nd.

The ranking was based on the results of a comprehensive survey conducted in and on open data compiled from each of the countries surveyed, she said.

The CGR of 2010-2011 was also based on inputs from the WEF Advisory Board on Competitiveness, of which Indonesia`s Trade Minister Mari Elka Pengestu is one of the members.

Indonesia left Portugal behind in 46th place, Italy 48th, India 51st, South Afrika 54th, Brazil 58th, Turkey 61st, Russia 63rd, Mexico 66th, Egypt 81st, Greece 83rd and Argentina 87th.

Among ASEAN member states, Indonesia ranked 5th after Singapore in 3rd place, Malaysia 26th, Brunei 28th, Thailand 38th, while Vietnam ranked 59th, the Philippines 85th, and Cambodia 109th.

"One of the outstanding issues in the Global Competitiveness Report 2010-2011 is the fact that the competitiveness of developed and developing countries is moving in the direction of convergence point," the ambassador said.

Citing as an example, she said a number of Middle Eastern and North African countries joined the top 50 on the list, led by Qatar in 17th place, Saudi Arabia 21st, United Arab Emirates 25th, Tunisia 32nd, Oman 34th, Kuwait 35th, and Bahrain 37th.

The WEF releases the report every year based on surveys of business leaders and the latest economic indicators deemed critical to global competitiveness.

The report showed Switzerland remaining at the top of the list unchanged from last year, followed by Sweden, Singapore, the United States and Germany.

Japan came in sixth place, with Finland, the Netherlands, Denmark and Canada making the top 10 on the list this year.Hong Kong, Taiwan and China ranked 11th, 13th and 27th respectively.

The GCR 2010-2011 covers reports on the competitiveness of 139 countries/economies, up from 133 the year before. The GCI was based on 12 competitive sectors, namely institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labour market efficiency, financial market development, technological readiness, market size, business sophistication, and innovation.

"The significant increase in Indonesia`s GCR shows the business world`s growing confidence in the Indonesian government`s efforts to improve infrastructures and business climate in the country," she said.

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