IMD World Competitiveness Booklet 2021

COMPETITIVENESS TRENDS - OVERALL INDONESIA

OVERALL PERFORMANCE (64 countries)

BASIC FACTS Capital Land area (square km '000)

Rank

Jakarta

2017 2018 2019 2020 2021

1,917 2020 14.582 2020 270.20 2020 1,058.4 2020 12,222 2020

32

Exchange Rate (per $)

37

40

42

43

4

Population - market size (millions)

CHALLENGES IN 2021 Deeper inequality driven by pandemic shocks to business climate, particularly faced by SMEs sector. • Deeper inequality driven by pandemic shocks to business climate, particularly faced by SMEs sector. • Unclear implementation of the omnibus law in order to invigorate competitiveness. • Asynchronous government regulations that impede business attractiveness. • Pseudo current account surplus reflecting domestic industrial indolence. • Indecisive policy in health and educational sectors which jeopardize the future sources of competitiveness.

16

Gross Domestic Product (GDP) (US$ billions)

57

GDP (PPP) per capita (US$)

-2.1 2020 2.03 2020 7.07 2020

10

Real GDP growth (%)

43

Consumer price inflation (%)

36

Unemployment rate (%)

138.22 2020 -0.45 2020 232.6 2019

4

Labor force (millions)

44

Current account balance (% of GDP)

27

Direct investment stocks inward ($bn)

Lembaga Management, FEB, Universitas Indonesia (LM FEB UI) NuPMK Consulting, Jakarta Provided by: Lembaga Management, FEB, Universitas Indonesia (LM FEB UI) NuPMK Consulting, Jakarta

2.23 2019

33

Direct investment flows inward (% of GDP)

COMPETITIVENESS LANDSCAPE

Economic Performance

Government Efficiency

Business Efficiency

Infrastructure

Domestic Economy

International Trade

International Investment Employment Prices

Public Finance

Tax Policy

Institutional Framework Business Legislation

Societal Framework

Productivity & Efficiency Labor Market Finance

Management Practices

Attitudes and Values

Basic Infrastructure

Technological Infrastructure Scientific Infrastructure

Health and Environment Education

3

7

17

19 20 20

23

26

36

36

39

40 39

44

49

49 50

51

58

60

PEER GROUPS RANKINGS ASIA - PACIFIC (14 countries)

POPULATIONS > 20 MILLION (29 countries)

2017 2018 2019 2020 2021

2017 2018 2019 2020 2021

11

11

11

11

12

14

14

16

17

17

76

IMD WORLD COMPETITIVENESS BOOKLET 2021