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WEF: Indonesia Leaps 19 Places to 50th Rank in WEF 2006 Global Competitive Index


Wednesday October 11, 2006
Press coverage

Responsible for the article below are author and publication. The
contribution does not necessarily mirror the views of Eurobali.

Indonesia Digest
Published by: TBSC-Strategic Communication
No.: 36.06 – Dated: 11 October 2006

WEF: Leaps 19 Places to 50th Rank in WEF 2006 Global Competitive Index


The World Economic Forum made its Press Release headline of 27 September: “ leaps 19 Places to 50th Rank in the World Economic Forum’s 2006 Global Competitiveness Index”. 


is the 50th most competitive economy in the world, 19 places up from last year, according to the latest edition of the World Economic Forum’s Global Competitiveness Index (GCI) rankings for 2006-2007 released that date”, said the release.


The country trails by a few places, but is ahead of , and , said WEF. Given that is still in an early stage of economic development, it does particularly well in a number of areas typically reserved for rich, innovation-driven economies. The country is beginning to show benefits of substantial improvements in technology transfer through FDI, company spending on R&D, as well as improvements in market efficiency linked to greater competition and fewer distortions in the goods markets, greater flexibility in the labour markets and better access to loans and the local equity market, commented WEF.


“The country has done very well in a number of key areas that have greatly enhanced its efficiency and innovative capacity. However, one of its key weaknesses lies in the quality of its institutions. Despite government efficiency and better private institutions, the country still suffers from pervasive corruption, limited judicial independence and a poor property rights regime. An equally important source of concern is the overall quality of infrastructure, perhaps attributable to the devastating effects of the 2004 tsunami.


The government must also do more to contain double-digit inflation. In the social sector, it should focus on improving basic health indicators including infant mortality rates and life expectancy, and to improve enrolment rates in secondary education. The government should now take advantage of its relative popularity and of the favourable economic context to invest more in infrastructure and the social sectors,” said Augusto Lopez-Claros, Chief Economist and Head of the Global Competitiveness Network at the World Economic Forum.


Considered the world’s three most competitive economies by WEF are , and . Ranked the no. 1 economy in the world in 2006 is , up from no. 4 last year. The , which was no. 1 last year moved down to no. 6 this year. Similarly down are , from no. 3 to no. 4, and , from no. 6 to no. 8 ranking in 2006. ’s economy has remained level at no. 5, while ’s has improved its GCI rank from no. 10 in 2005 to no. 7 in 2006.