Indonesia Ranks 4th in Southeast Asia for Economic Freedom Index

Based on the 2021 *Index of Economic Freedom* report released by The Heritage Foundation, Indonesia has an economic freedom index score of 66.9 points. This places Indonesia fourth in Southeast Asia.

However, this score decreased by 0.3 points from Indonesia's economic freedom performance the previous year. The decline in Indonesia's score is due to a lower score in the judicial effectiveness category.

The report also mentions that greater efforts to improve economic freedom are needed by implementing effective measures to reduce corruption. In addition, the government needs to strengthen the judicial system, modernize and simplify investment regulations, and increase labor market flexibility.

Globally, Indonesia's economic freedom ranks 56th out of 178 countries. In the Asia-Pacific region, Indonesia ranks 10th out of 40 countries.

Singapore ranks first in Southeast Asia with an economic freedom index score of 89.7 points. This score also places Singapore first globally.

Malaysia and Thailand follow, with economic freedom index scores of 74.4 points and 69.7 points respectively. Brunei Darussalam is below Indonesia with a score of 66.6 points. Timor-Leste has the lowest score among other Southeast Asian countries, at 44.7 points.

The Heritage Foundation's 2021 Economic Freedom Index assesses countries with the freest economies based on twelve factors, including property rights, judicial effectiveness, government integrity, tax burden, government spending, fiscal health, business freedom, labor freedom, monetary freedom, trade freedom, investment freedom, and financial freedom.

A country's score in each factor is then compiled into a single score, ranking countries from highest to lowest, thus identifying the countries with the freest economies.