Singapore, the Most Prosperous Nation in Southeast Asia: Where Does Indonesia Rank?

The Legatum Institute released its *World Prosperity Index* at the end of 2021.

According to the report, Singapore is the most prosperous country in Southeast Asia, with an average score of 79.05. Indonesia ranks third in Southeast Asia with a score of 60.61.

Indicators for Assessing National Prosperity

The Legatum Institute measured the prosperity levels of 167 countries using a scale of 1-100. The higher the score, the more prosperous the country.

The index is calculated based on 12 prosperity elements grouped into three main variables: inclusive society, open economy, and empowered society, as explained below:

* Inclusive Society

An inclusive society is a crucial requirement for a country's prosperity. The elements in this variable relate to the relationship between society and the state, social violence, the freedom of groups and individuals to interact, and how individuals interact. This variable assesses security and safety, personal freedom, governance, and social capital.

* Open Economy

In this variable, the Legatum Institute measures the extent to which a country's ability to support healthy economic competition, encourage innovation and investment, promote business and trade, and facilitate inclusive growth. Elements in this variable include the investment environment, business conditions, market access and infrastructure, and economic quality.

* Empowered Society

The empowered society variable considers the resources a country needs to be prosperous. Four aspects are assessed in this variable: living conditions, education, health, and the natural environment.

Based on the above assessment variables, the Legatum Institute provides the following prosperity index scores for Southeast Asian countries:

1. Singapore: 79.05
2. Malaysia: 67.25
3. Indonesia: 60.61
4. Thailand: 60.51
5. Vietnam: 58.69
6. Philippines: 56.75
7. Laos: 50.13
8. Cambodia: 49.15
9. Myanmar: 45.62

Indonesia: High Social Capital, Low Quality of Life

According to the Legatum Institute, Indonesia's prosperity level ranks 62nd globally. Indonesia's position dropped one rank compared to the previous year (61st), but it has risen 10 levels compared to its 2011 position.

For 2021, Indonesia is rated highly in the social capital indicator.

The social capital indicator measures how strong the relationships are among community members in terms of mutual trust, respect, and assistance. In this regard, Indonesia ranks 2nd in Southeast Asia and 15th globally with a score of 76.27.

However, living conditions in Indonesia are considered low. The quality of housing, basic services, and connectivity in Indonesia is considered insufficiently good, resulting in a score of 64.7 and a global ranking of 108th.