Indonesia and Turkey Plunge in Global Competitiveness Rankings

TEMPO.CO, Jakarta - The World Competitiveness Ranking (WCR) reports that Indonesia and Turkey's competitiveness rankings have drastically declined in 2025. 

Turkey's ranking dropped in the same way as Indonesia's. Turkey's ranking dropped by 13 places, placing it 66th out of 69 countries. This decline makes Turkey one of the countries with the lowest competitiveness performance in the evaluated group this year.

The Institute of Management Development (IMD), which compiles the annual WCR 2025 report, explains that Turkey's decline in ranking is influenced by worsening domestic economic conditions, particularly the prolonged currency crisis and pressure on the national financial system. Exchange rate instability and high inflation also affect the economic actors' perception of the sustainability of the country's macroeconomic policies.

In addition to Indonesia and Turkey, several other countries have experienced significant declines, including Poland, South Korea, and Belgium. This decline suggests that global economic pressures and domestic challenges affect not only developing countries but also those with mature economies.

Here is the list of countries with the largest decline in competitiveness ranking in the WCR 2025:

1. Indonesia, down 13 places, from 27th to 40th

2. Turkey, down 13 places, from 53rd to 66th

3. Poland, down 11 places, from 41st to 52nd

4. South Korea, down 7 places, from 20th to 27th

5. Belgium, down 6 places. From 18th to 24th

In the ASEAN region, Thailand and Singapore's rankings have declined by five and one place, respectively. Conversely, Malaysia and the Philippines saw increases of 11 and one place, respectively, largely due to their success in digitizing industries and reforming the investment sector.

IMD's assessment of these countries' competitiveness is based on 262 indicators. These indicators consist of 170 pieces of quantitative statistical data and 92 survey-based indicators from more than 6,000 executives in each country. The assessment is divided into four categories: economic performance, government efficiency, business efficiency, and infrastructure.

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