Indonesia more competitive than ever

Trade Minister Mari Elka Pangestu said Indonesia was deemed capable of maintaining its macroeconomy at a healthy level and of improvement in the education sector, despite the global crisis.

"This [ranking] mirrors improvements in Indonesian economic conditions," Mari said as quoted by Antara state news agency.

Indonesia trails Southeast Asian neighbors Singapore, Malaysia and Thailand but with a narrower margin. The three countries rank third, 26th and 38th respectively.

Switzerland tops the global ranking, which saw Nordic countries continue to be well positioned on the roster, with Sweden (second), Finland (seventh) and Denmark (ninth) among the top 10.

Other factors that contributed to the improvement in Indonesia's competitive index included the country's favorable bureaucracy and business climate.

But Mari admitted infrastructure and logistics remained the main challenges Indonesia had yet to cope with. "They are our unfinished projects, but the government considers them a priority," she said.

The report recommended that Indonesia make a greater effort to eradicate tuberculosis and malaria, lower the infant mortality rate, and boost the use of information technology.