World Bank: Indonesia Improves in the 'Doing Business 2014' Ranking
On Friday (25/10), the World Bank released its 'Doing Business 2014' report in which it "ranks countries on their overall 'ease of doing business', and analyzes reforms to business regulation - identifying which economies are strengthening their business environment the most." In total 189 countries were analyzed. Indonesia, traditionally characterized by a complex and difficult investment environment, managed to climb 8 places in the ranking. Southeast Asia’s largest economy rose from number 128 to 120 in the 2014 edition.
The higher ranking of Indonesia was particularly caused by easier access to credit and electricity. However, compared to its regional peers, Indonesia still lacks behind:
Doing Business 2014 Ranking:
| 1. | Singapore |
| 2. |
Hong Kong |
| 3. |
New Zealand |
| 4. | USA |
| 5. | Denmark |
| 6. | Malaysia |
| 7. | South Korea |
| 18. | Thailand |
| 96. | China |
| 99. | Vietnam |
| 108. | Philippines |
| 116. | Brazil |
| 120. | Indonesia |
Source: World Bank 'Doing Business 2014'
Indonesia's slightly higher ranking is confirmed by the pace of recent investments in the country. In the third quarter of 2013, total realized investments amounted to IDR 100.5 trillion (USD $8.89 billion), a new record in the history of Indonesia.
Ease of Doing Business in Indonesia:
Please note that - when you click on the links below that lead you to the World Bank website - the 2013 ranking mentioned on the World Bank website is not last year's published ranking but a comparable ranking for the Doing Business 2013 Report that captures the effects of such factors as data corrections and the addition of four economies (Libya, Myanmar, San Marino and South Sudan) to this year's sample.
| Subject |
2014 Rank | 2013 Rank |
| Starting a Business | 175 | 171 |
| Dealing with Construction Permits |
88 | 77 |
| Getting Electricity |
121 | 121 |
| Registering Property | 101 | 97 |
| Getting Credit | 86 | 82 |
| Protecting Investors | 52 | 51 |
| Paying Taxes | 137 | 132 |
| Trading Across Borders | 54 | 52 |
| Enforcing Contracts | 147 | 146 |
| Resolving Insolvency | 144 | 142 |
Source: World Bank 'Doing Business 2014'
Although the improvement is promising, there should be no time for complacency as the investment climate in Indonesia is still troubled by a number of issues including corruption, weak infrastructure, weak legal certainty, bureaucracy, and weak human resources.