Indonesia’s business environment is ranked above average in our assessment of 185 economies. The Heritage Foundation’s Index of Economic Freedom survey 2025 assigns Indonesia rank 60 out of 185 economies, given its good performance in government spending, fiscal health, tax burden, monetary, trade and business freedom, though weaknesses remain in property rights, government integrity, judicial effectiveness and investment freedom. Meanwhile, the World Bank Institute’s annual Worldwide Governance Indicators survey indicates that government effectiveness, regulatory quality and rule of law have improved since 2011. Though the government has taken policy actions to achieve net-zero emissions by 2060, environmental sustainability remains in bad conditions, considering Indonesia’s coal-dominated energy mix and industry reliance on natural resources.
