According to the World Economic Forum, which releases the Global Competitiveness Index on an annual basis, the six most problematic factors for doing business in Indonesia are corruption, access to financing, inflation, inefficient government bureaucracy, inadequate supply of infrastructure, and policy instability.

Economist Tony Prasetiantono said that Indonesia’s competitiveness has improved mainly because of sharp rupiah depreciation that occurred in the second half of 2013. Indonesia’s currency lost about one-fifth of its value against the US dollar during that period, making its exports more competitive.

The table below shows the world’s top five most competitive countries based on the Global Competitiveness Index as well as Indonesia and several neighbouring countries in the Southeast Asian region. It also shows that Indonesia still lags behind some of its regional peers.

Country    Ranking
Switzerland          1   
Singapore          2
United States          3 
Finland          4
Germany          5 
Malaysia         20
Thailand         31
Indonesia         34
Philippines         52
Vietnam         68

Source: Global Competitiveness Index 2014-2015

Further Reading:

World Economic Forum’s Global Competitiveness Index 2014-2015