Indonesia in The Global Competition

I've just read about Global Competitiveness Report (GCR) 2016-2017 since last week and I think it is so interesting. My focus in every study about global ranking is always about Indonesia. Where is the position of Indonesia right now? How come that happens? How if Indonesia is compared with other countries in ASEAN? Hahahaha such a nerd actually.

But, I do that just as casual remark. I will read it fast in order to just improve my knowledge about my country in global competition. Sometimes yeah I read thoroughly when I intend to write scientific article for instance, but it's rare LOL.

Back to GCR 2016-2017, it's interesting to know that position of Indonesia drops to 41 from 37 in last year list. The reason behind this is not because Indonesia gets bad in performance, but some countries successfully boost their performance hence overtake position above Indonesia. It can be seen from Indonesia's overall score which is 4.52 from scale ranges 1-7, still the same with last year score which was 4.52 also. But if we look back to 5 years ago, Indonesia has leaped far from 50 position in 2012-2013 or up 9 positions. FYI in 2014-2015, Indonesia got the best position in history which was the 34 position.

Compared with other countries, I usually choose Malaysia and Thailand, sometimes Vietnam also. But in my preference, Msia and Thailand are the two countries in ASEAN which Indonesia should compete with zealously hahaha. I don't put Singapore as competitor because it's too far away better than Indonesia (currently it takes the second position ha ha ha). In 2016-2017, Malaysia is ranked for 25 position and Thailand 34. What a though competition. But I can say it again that Indonesia has leaped far, compared with Msia and Thailand. In 5 years, Msia's rank is stagnant (25 to 25 again) while Thailand only ups 4 levels (38 to 34). This is not the end though. Indonesia has a lot of resources and young generations which will help this nation goes to the highest level. Go, Indonesia!!

In other sections of GCR, surprisingly, I read that Indonesia is categorized as The Efficiency-driven Stage in stage of development (pg 37-38). Based on GCRs explanation, stage of development comprises 3 stages as follows:
  • First stage: factor driven which means country relies on primarily unskilled labor and natural resources.
  • Second stage: efficiency-driven stage when country begins to develop more-efficient production processes by improving high skilled and educated labor, be able to harness the benefits of existing technologies, and has vast market. 
  • Third stage as the highest: innovation driven stage when country can compete with the most sophisticated production processes and also be innovating. 
It is surprising because I thought Indonesia was still positioned in first stage or at least transition stage from 1 to 2 ha ha ha.. I am sorry, Indonesia. I am so proud though, knowing that Indonesia is beyond my expectation. And also, India (yes, India!) which is predicted as the new power of Asia with China, is still categorized as first stage country. I can't believe my eyes honestly. Well done, Indonesia! I know you will be the great nation someday, very soon!

Indonesia is now world's emerging economy
From the report, I also find Indonesia is mentioned many times for its large economy (top 10 world's largest), its low price of commodities which undermines the growth in region (I don't really understand though, I will study it later lol), and tragically for its worst health outcomes. And again, still not changed for decades I think, Indonesia's 3 most problematic factors of doing business are corruption, inefficient government bureaucracy, and inadequate infrastructure supply. Nevertheless, the most important thing is that Indonesia is considered as emerging economy which affects a lot in region and also the world.

You can read the full report of GCR from this link. Please refer to that report for every citation you need about global competitiveness index. My post is just a casual review about this topic and not appropriate to be claimed as reference hahaha.

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