{"id":359859,"date":"2025-07-11T08:53:34","date_gmt":"2025-07-11T01:53:34","guid":{"rendered":"https:\/\/unair.ac.id\/indonesias-global-competitiveness-ranking-drops-unair-expert-urges-comprehensive-reform\/"},"modified":"2025-07-11T09:55:45","modified_gmt":"2025-07-11T02:55:45","slug":"indonesias-global-competitiveness-ranking-drops-unair-expert-urges-comprehensive-reform","status":"publish","type":"post","link":"https:\/\/unair.ac.id\/en\/indonesias-global-competitiveness-ranking-drops-unair-expert-urges-comprehensive-reform\/","title":{"rendered":"Indonesia’s Global Competitiveness Ranking drops; UNAIR expert urges comprehensive reform"},"content":{"rendered":"\n

UNAIR NEWS<\/strong> <\/a>\u2013 Indonesia is once again grappling with a significant challenge in the global economic arena. In the IMD World Competitiveness Ranking 2025, the nation dropped 13 positions\u2014from 34th to 47th\u2014signaling that structural reforms remain insufficiently implemented.<\/p>\n\n

According to Professor Dr. Rossanto Dwi Handoyo, a senior economist at 51动漫\u2019s<\/a> Faculty of Economics and Business, the decline highlights ongoing inefficiencies in bureaucracy and a lack of equitable infrastructure development across the country.<\/p>\n\n

\u201cOur bureaucracy is still widely seen as inefficient and inflexible, with persistent issues of corruption in some areas. This perception creates an unfavorable investment climate and undermines Indonesia\u2019s business competitiveness,\u201d he stated.<\/p>\n\n

Infrastructure growth not aligned with needs<\/strong><\/h5>\n\n

Professor Handoyo also raised concerns about the effectiveness of Indonesia\u2019s large-scale infrastructure expansion in recent years. Despite increased construction of toll roads, ports, and airports, many projects have failed to meet actual demand. <\/p>\n\n

\u201cNumerous new airports remain underused, and the quality of toll roads continues to raise concerns. This suggests that infrastructure growth does not always equate to productivity gains,\u201d he noted.<\/p>\n\n

The IMD report further revealed a drop in Indonesia\u2019s infrastructure quality index, from 28th to 34th place. This decline underscores how recent development efforts have yet to significantly improve logistical efficiency or economic mobility.<\/p>\n\n

\"
Prof Rossanto Dwi Handoyo SE MSi PhD (Photo: PKIP UNAIR )<\/figcaption><\/figure>\n\n
Shortcomings in innovation and human capital<\/strong><\/h5>\n\n

A key issue identified is Indonesia\u2019s limited innovation capacity. Prof. Handoyo pointed out that the country\u2019s research and development (R&D) budget remains under 0.5 percent of its Gross Domestic Product (GDP)\u2014a figure that restricts innovation and limits the growth of national patent output. <\/p>\n\n

\u201cWithout robust research efforts, it\u2019s difficult to generate added economic value. Compounding this is the fact that our workforce still lacks the capabilities required by many industries,\u201d he explained.<\/p>\n\n

Competitiveness as driver of long-term growth<\/strong><\/h5>\n\n

He emphasized that global competitiveness is essential for attracting long-term investment, sustaining economic growth, and enhancing national welfare. Without substantial progress, Indonesia risks falling into the middle-income trap\u2014where growth stagnates and the country struggles to transition into a high-income economy.<\/p>\n\n

\u201cIf we\u2019re truly committed to achieving Indonesia Emas 2045, then structural reform must be pursued consistently. That means not only investing in roads and airports but also strengthening human capital, driving innovation, and improving governance,\u201d he concluded.<\/p>\n\n

Author: Rosali Elvira Nurdiansyarani<\/p>\n\n

Editor : Khefti Al Mawalia<\/p>\n","protected":false},"excerpt":{"rendered":"

UNAIR NEWS \u2013 Indonesia is once again grappling with a significant challenge in the global economic arena. In the IMD World Competitiveness Ranking 2025, the nation dropped 13 positions\u2014from 34th to 47th\u2014signaling that structural reforms remain insufficiently implemented. According to Professor Dr. Rossanto Dwi Handoyo, a senior economist at 51动漫\u2019s Faculty of Economics and […]<\/p>\n","protected":false},"author":79,"featured_media":359854,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[48,4554],"tags":[178,168],"class_list":["post-359859","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-experts","category-news","tag-unair-en","tag-universitas-airlangga-en"],"yoast_head":"\nIndonesia's Global Competitiveness Ranking drops; UNAIR expert urges comprehensive reform<\/title>\n<meta name=\"description\" content=\"In the IMD World Competitiveness Ranking 2025, the nation dropped 13 positions\u2014from 34th to 47th\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/unair.ac.id\/en\/indonesias-global-competitiveness-ranking-drops-unair-expert-urges-comprehensive-reform\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Indonesia's Global Competitiveness Ranking drops; 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