Competitiveness Rating Slips

Indonesia fell behind in terms of health care, basic education and labor market efficiency. Indonesia’s regulations make it problematic for companies to hire employees and prohibitive redundancy costs amount to over a year’s worth of salary. Women also have a low labor force participation rate in the country, placing 115th on the list. In addition, entrepreneurs in the country are dissuaded from starting businesses due to the number of regulations involved, placing 133rd on the list. Neighboring countries Malaysia and the Philippines also saw their rankings drop in part due to weak global economy growth.  Despite Indonesia’s booming e-commerce sector and an array of local online services, its low broadband subscriptions and available internet bandwidth  — at 108th and 112th on the list respectively —  undermine the country’s future for potential growth.
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