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5 Most Competitive Business Sectors in Indonesia

Adi Ahdiat 12/06/2024 16:16 WIB

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According to the Indonesian Competition Commission (KPPU), the accommodation, food, and beverage sector had the highest level of business competition in Indonesia in 2023.

5 Sectors with the Highest Business Competition Index in Indonesia (2023)

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5 Most Competitive Business Sectors in Indonesia

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5 Sectors with the Highest Business Competition Index in Indonesia (2023)

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Healthy business competition can spur businesses to innovate and produce affordable products.

According to a report by the Indonesian Business Competition Supervisory Commission (KPPU), the sectors with the highest competition currently are accommodation and food and beverage provision.

KPPU, together with the Center for Economics and Development Studies, Padjadjaran University (CEDS Unpad), measured the national business competition index through a survey of various stakeholders in 15 economic sectors.

Respondents included provincial-level representatives from the Department of Industry/Trade, the Indonesian Chamber of Commerce and Industry (Kadin), Bank Indonesia offices, and local academics.

The dimensions surveyed included industry structure, behavior, and performance; supply and demand factors; and regulations and institutions related to business competition.

The survey results were then analyzed and formulated into a score on a scale of 1-7. A score of 1 indicates very low competition, while a score of 7 indicates very high competition.

Based on this method, in 2023 the accommodation and food and beverage sector achieved a business competition index score of 5.22.

"With a large number of businesses, a wide selection of products, and competitive prices, this sector has an index indicating high competition," said the CEDS Unpad team in their report.

Other sectors with high business competition indices include wholesale and retail trade, repair and maintenance of cars and motorcycles; financial and insurance services; education services; and health services.

On the other hand, sectors with the lowest business competition indices are electricity and gas provision; water treatment, waste and waste management; and mining and quarrying.

"Sectors generally controlled or managed by the government show low scores," said the CEDS Unpad team.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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5 Most Competitive Business Sectors in Indonesia

5 Most Competitive Business Sectors in Indonesia

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