DEN: Competitiveness Is Not Just About Cheap Goods, But Also About Sustainable Practices

The Vice Chair of the National Economic Council, Mari Elka Pangestu, stated that improving industrial competitiveness means being part of a sustainable supply chain. "In terms of sustainability, competitiveness is not just about making goods as cheaply as possible. We need to be part of a sustainable supply chain, which requires green energy to support our production and services. This means we must engage in sustainable practices," she said during the SDGs Lecture 2025 at Bappenas in Jakarta on Friday. If these efforts do not consider sustainability, Indonesia will struggle to compete, as it will lack the ability to sell green products in both international and domestic markets.

She noted that Indonesia's current economic challenge is the high investment output ratio (Incremental Capital Output Ratio/ICOR). Investment use in Indonesia is inefficient and has a low fiscal multiplier. This means that government investments are not having the expected impact due to various barriers in the investment climate.

"Many of these issues act as investment barriers, and we are falling behind other ASEAN countries in terms of ease of doing business. This includes logistics costs, trade policies, and limited workforce capacity that hinder our progress," Mari Elka explained, as reported by Antara on Saturday (January 18, 2025). Therefore, it is essential to enhance industrial competitiveness, address human resource issues, and improve workforce quality. By doing so, Indonesia can attract investments that will create jobs. "We must improve the investment climate, ease of doing business, and boost industrial competitiveness to create jobs and ensure long-term economic sustainability," she added.

Tag: DEN Economic Challenge Mari Elka Pangestu