Competitive Landscape in 15 Indonesian Economic Sectors

Economics & Macro

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Adi Ahdiat 11/04/2022 17:00 WIB

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According to the KPPU study, the highest level of business competition is in the accommodation and food and beverage sectors, while the lowest is in electricity and gas procurement.

Indonesia's Business Competition Index in 15 Economic Sectors (2021)

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Competitive Landscape in 15 Indonesian Economic Sectors

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Indonesia's Business Competition Index in 15 Economic Sectors (2021)

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According to the annual report of the Indonesian Business Competition Supervisory Commission (KPPU), the business competition climate in Indonesia improved in 2021.

The sector with the highest level of business competition is accommodation and food and beverage provision.

KPPU measures the Business Competition Index (IPU) using a 1-7 scale. A score of 1 indicates the lowest level of competition, while a score of 7 indicates the highest.

Using this scoring system, the business competition index for accommodation and food and beverage provision was rated at 5.10, the highest compared to other sectors, as shown in the graph.

"High business competition indirectly drives labor productivity and higher wage levels," KPPU explained in its report.

Sectors with Low Business Competition

In its report, KPPU also categorized several economic sectors with low business competition or below the national average in 2021, namely:

* Real estate
* Construction
* Mining and quarrying
* Water supply, waste, waste water and recycling management
* Electricity and gas supply

"The (low-indexed) economic sectors will receive attention from KPPU to determine the causes of low business competition in these sectors and whether there are obstacles hindering the entry of new players into the industry," KPPU wrote in its report.

(Also read: Business Competition in Indonesia Increases, Approaches 2024 Target)

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."