Inp.polri.go.id - Jakarta. Indonesia’s decline in the 2025 IMD World Competitiveness Ranking—from 27th to 40th—is largely attributed to external factors, particularly tariff wars affecting Southeast Asia, the Ministry of Industry said on Wednesday (25/6/2025).
“This decline stems from over-supplied countries shifting exports to Indonesia, creating an influx of cheap imports,” said ministry spokesperson Febri Hendri Antoni Arif. “Internally, our labor productivity and raw material sufficiency remain stable.”
The IMD World Competitive Center (WCC) confirmed that Southeast Asia’s rankings suffered from global trade disruptions, despite Indonesia previously climbing from 44th in 2022 to 27th in 2024, as reported by antaranews.com.
WCC Director Arturo Bris noted that Indonesia’s earlier gains were driven by strong commodity exports, but the region now faces increased external pressure.
Survey data show 66.1% of Indonesian executives see lack of economic opportunity as a major challenge.
Experts recommend stronger infrastructure, talent development, and integrated policymaking to support long-term competitiveness. Effective governance and practical implementation are crucial to boosting economic resilience and investor confidence.
(mg/inp/pr/rs)