Indonesia drops to 48th in global competitiveness ranking, climbs to 2nd in Muslim-friendly tourism index

Indonesia’s position in the International Institute for Management Development (IMD) World Competitiveness Ranking fell to 48th out of 70 countries, an eight‑place drop from its 2025 standing at 40th. The report highlighted declines across four pillars: economic performance (24th, score 59.9), government efficiency (38th, score 55.1), business efficiency (50th, score 40.9) and infrastructure (58th, score 31.9). Regionally, Indonesia now trails the Philippines, Vietnam, Thailand, Malaysia and Singapore.

In a contrasting development, the Global Muslim Travel Index (GMTI) Awards 2026 placed Indonesia second as the “Muslim‑Friendly Destination of the Year,” up from fifth in 2025 and achieving a record score of 79. Officials from the Ministry of Tourism cited strengthened halal certification, expanded Muslim‑friendly destinations and improved services as drivers of the rise.