Business.comJAKARTA – Quality Infrastructure Since 2018, Indonesia has been considered stagnant compared to several neighboring countries in Southeast Asia, even India.

Based on the report “Navigating High Winds: Southeast Asia Outlook 2024-2034” by Angsana Council, Bain & Company and DBS Bank, which references the World Bank’s Logistics Performance Index, Indonesia’s infrastructure score in 2023 was only 2.9.

The infrastructure score has not changed compared to 2018. The report says that most countries in Southeast Asia, with the exception of Indonesia, have seen improvements in infrastructure quality since 2018.

“Over the past five years, most Southeast Asian countries, with the exception of Indonesia, have experienced improvements in infrastructure quality,” said the report quoted on Thursday (08.08.2024).

Indonesia's stagnant infrastructure quality rating is believed to be due to infrastructure development challenges, geographic complexity, financing constraints and regulatory restrictions.

On the other hand, several countries in Southeast Asia have seen improvements in infrastructure quality, including Singapore, Thailand, Malaysia, Vietnam and the Philippines.

The highest increase was recorded in Thailand, with an increase of 0.6 points from 3.1 in 2018 to 3.7 in 2023.

Then Singapore, Malaysia and the Philippines each rose by 0.5 points from 4.1, 3.1 and 2.7 in 2018 to 4.6, 3.6 and 3.2 in 2023.

This report also reported Indonesia's infrastructure score of 2.9, lower than India's, which reached 3.2 in 2023. India's infrastructure score increased by 0.3 points from 2.9 in 2018.

In addition, Indonesia's investment level in infrastructure is still considered very low, at only 3% of GDP from 2013 to 2019.

This level of investment is lower than in Thailand and Vietnam, which reach 5% of GDP, and even well below Malaysia, which reaches 8% of GDP.