Introductory Remarks of President of the Republic of Indonesia during Plenary Cabinet Meeting on President’s Directives and Current Economic Condition at the State Palace in Jakarta, June 24, 2024

Bismillahirrahmanirrahim.

Assalamu’alaikum warahmatullah wabarakatuh.

Distinguished Vice President of the Republic of Indonesia;
Ladies and Gentlemen.

We all know that the world is currently full of uncertainties,  in the midst of a weak, uncertain global economic condition. Geopolitical tensions are escalating, especially in the Middle East. The global inflation rate showed an upward trend. The currency depreciation has also weakened the economy in all countries.

However, I’m proud that we are at the higher competitiveness ranking this year. Previously, our world competitiveness ranking jumped from 44^th to 34^th, and this year it jumped to 27^th. The World Competitiveness Ranking was issued by the Institute for Management Development (IMD).

I’m also proud that our rank has surpassed the United Kingdom’s in 28^th, Malaysia’s in 34^th, Japan’s in 38^th, the Philippines’ in 52^nd, and Türkiye’s in 53^rd. We are the 27^th. We have to be grateful for this. With this ranking, we know our position. As I said earlier, it is not easy to improve our ranking amid current global uncertainties. Even Japan has dropped three places, and Malaysia has dropped seven places.

To that end, I remind all administrations in ministries and institutions to keep an eye on the current global and national economic conditions. As we are aware, Japan’s ranking dropped because of its weakening currency and decrease in productivity. Malaysia’s ranking also dropped because of its weakening currency and political instability.

It means that political stability is vital. Currency stability is important. The increase in productivity plays a crucial role. The increase in our World Competitiveness Ranking is because of our good governance, our business competitiveness, and our economy. Thanks to the Job Creation Law, our rank advanced eight places. Considering our business competitiveness as well as our workforce and productivity, we could jump six places. Thanks to our robust economy, we can maintain our economy and boost economic growth. Those are the main factors behind the increase in our competitiveness ranking.

In terms of business efficiency, Indonesia’s labor force availability rank second thanks to workers significant number and necessary skills. The effectiveness of company management is also a business-related issue. The community behavior and culture of our society also support us in maintaining our competitiveness.

There are four issues that must become our concern; two of those are said to be our weak points, namely infrastructure and health sectors. We have to admit that health sector transformation in our country is still ongoing. Currently, we rank the 61^st. Another sector [that still needs improvement] is education.

Once again, these two sectors, health and education, are our weaknesses that must be addressed to increase our competitiveness. Our ranking in science is in the 45^th position, while our technology on the 32^nd position. We must pay close attention to the sectors so we can improve our competitiveness ranking gradually. I reiterate that the health and education sectors must become the main concern of our government.

In particular, political stability must also become our concern. We have to avoid political turbulence and ensure a smooth transition from the current to the next administration. The global community will keep an eye on it. Be cautious in addressing the current issues. Spread positive news to build market trust and make the market optimistic about our fundamental economy, which is in fact in good condition.

That concludes my remarks on this auspicious occasion.

I thank you,
Wassalamu’alaikum warahmatullahi wabarakatuh.

(AP/RAS/MUR)