Below is a list with tagged columns and company profiles.

Today's Headlines Competitiveness

  • Aviation Industry: How Many Foreign Aircraft Pilots Work in Indonesia?

    Asman Abnur, Indonesian Administrative and Bureaucratic Reform Minister, said a total of 654 foreign airplane pilots currently work in Indonesia. This is a relatively high figure compared to the 7,150 Indonesian pilots as it implies that 8.4 percent of all pilots in Indonesia are foreign. The use of foreign pilots is allowed by the Indonesian government since 2008.

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  • Indonesia Improves in WEF's Global Competitiveness Report 2017-2018

    Indonesia's ranking improved in the World Economic Forum (WEF)'s Global Competitiveness Report 2017-2018. In the latest edition, released earlier today (27/09), Indonesia ranks 36th, up from 41st in last year's edition. In the 2017-2018 edition, a total of 140 countries are analyzed (using 12 pillars of competitiveness) and ranked by WEF, a Swiss non-profit foundation.

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  • Natural Gas Price Indonesia Remains High Despite Gov't Promise

    It has been many months since Indonesian President Joko Widodo signed Presidential Regulation No. 40/2016 on the Determination of the Natural Gas Price in the second half of 2016. However, most businesses in Indonesia still need to pay a high price for gas. Therefore, businesses are again urging the government to be committed to its gas price policy.

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  • Business & Investment Climate of Indonesia: Improving Competitiveness

    Indonesia rose six positions in the 2017 edition of the IMD World Competitiveness ranking. In this edition Southeast Asia's largest economy was ranked 42nd. This is positive because it shows the government's reform agenda is having an impact by improving the investment and business climate. However, Indonesia remains ranked behind its regional peers the Philippines (41st), Thailand (27th), Malaysia (24th), and Singapore (3rd).

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  • Footwear Industry of Indonesia Plagued by Quarantaine Requirement

    Indonesian footwear manufacturers urge the government to remove leather from the quarantine requirement in order to improve the competitiveness of the Indonesian footwear industry. Indonesia's footwear industry imports about 70 percent of its leather consumption (while Indonesia exports most - if not all - of its domestically-made premium leather).

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  • Steel Production Indonesia: Government Targets 5% Growth in 2017

    The Indonesian government targets to see domestic steel production rise by 5 percent year-on-year (y/y) in 2017. Strategies to encourage Indonesia's steel output include tighter supervision on steel imports and offering energy price incentives to domestic producers (in an effort to boost the competitiveness of Indonesian steel).

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  • Rubber Glove Industry of Indonesia Needs a Cheaper Gas Price

    Rubber gloves manufacturers in Indonesia are pessimistic about their business in 2017. This pessimism is caused by the lack of clarity whether - or when - the Indonesian government will lower the gas price for the rubber glove sector. Indonesia's high gas price gives rise to high operational costs for Indonesia's rubber glove producers. Reportedly, a number of local rubber glove factories have ceased production since late-2015.

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  • Deindustrialization in Indonesia's Ceramic Industry due to ACFTA?

    Elisa Sinaga, Chairman of the Indonesian Ceramic Industry Association (ASAKI), is concerned about the zero percent import duty policy (applied per 2018) for Chinese ceramics that are shipped into Indonesia. This policy could lead to massive ceramic imports from China and encourage the deindustrialization in Indonesia's ceramic sector.

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  • Trans-Pacific Partnership & Indonesia: Unclear Future

    Indonesian Industry Minister Airlangga Hartanto is pessimistic about the future of the Trans-Pacific Partnership (TPP) now Donald Trump has won the US presidential election earlier this week. During his campaign Trump repeatedly emphasized the need for more protectionist measures and the reviewing of free trade deals in order to make the US economy stronger. Previously, Indonesian President Joko Widodo said Indonesia is eager to join the TPP within the next couple of years.

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  • Ease of Doing Business in Indonesia Improving, Time for Complacency?

    Indonesia's improving ranking in the World Bank's Ease of Doing Business Index shows that the government's reform efforts have had a positive effect. However, there is no time for complacency as most industries in Indonesia continue to lack competitiveness compared to regional counterparts, while many entrepreneurs in Indonesia continue to complain about (the lack of) legal certainty as well as (the lack of) good coordination and cooperation between Indonesia's central and regional governments (in terms of policy implementation).

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Latest Columns Competitiveness

  • ADB: Need to Continue Reforms to Improve Indonesia's Competitiveness

    Growth rates in Indonesia in 2013 and 2014 will fall below earlier projections, highlighting the need to continue improving the country’s competitiveness in manufactured exports, says the Asian Development Bank (ADB) in an update of its flagship annual economic publication, Asian Development Outlook 2013. ADB revised down its 2013 gross domestic product (GDP) growth forecast for Indonesia to 5.7% from 6.4% seen in April. For 2014, growth will also be adjusted to 6.0% from the previous estimate of 6.6%.

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  • Indonesia Increasingly Important Investment Destination for Japan

    After China and India, Indonesia is currently the third most important investment destination for Japanese investments in the manufacturing sector. In 2011, Indonesia - Southeast Asia's largest economy - was still ranked number five on that list. However, in recent years the country managed to surpass Thailand and Vietnam. This fact indicates the important link between Indonesia and Japan. The chief executive officer of the Japan Bank for International Cooperation (JBIC), Hiroshi Watanabe, confirmed these findings.

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  • World Bank: Logistics Costs Reduce Economic Potential of Indonesia

    In its most recent report regarding Indonesia's economy, the World Bank states that high logistic costs form a serious impediment to the country's economic growth. The report, titled Annual Logistics Report, is compiled by Bandung Institute of Technology’s Research Center for Logistics and Supply Chains, the Indonesian Logistics Association (ALI), the STC Group, Panteia Research Institute, and the World Bank Indonesia Office. The report provides an analysis and overview of the progress made in tackling the problem of logistics in Indonesia.

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  • Low Competitiveness Blocks Development of Indonesia's Manufacturing Sector

    Despite the fact that Indonesia reported the world's third-highest GDP growth in 2012 (behind China's 7.4 percent and Saudi Arabia's 7.1 percent), supported by rising consumption by a burgeoning middle class and significant increased foreign direct investment, the country's performance in terms of competitiveness is disappointing. It is cheaper to import products from countries that contain competitive businesses than to produce them in Indonesia.

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