Global Power Index 2023 Assessment Indicators
In 2023, Indonesia ranked 34th in the Global Power Index (GPI) with a score of 161.4. At the Southeast Asian regional level, Indonesia is in third place, indicating its position as one of the main powers in the region.
The GPI reflects a country’s capabilities and potential in various aspects that determine global power and influence. This index is calculated based on several main components that complement each other, namely active consumer market, military balance, technological leadership, geo-strategic position, systemically important commodities, and financial strength.
Indonesia has a large and growing consumer market. With a population of more than 270 million people, Indonesia is one of the largest markets in the world. The rapid growth of the middle class and increasing purchasing power of the community are the main drivers of the active consumer market in Indonesia. This dynamic market attracts many investors and multinational companies to operate in Indonesia, which in turn increases its economic strength.
Military strength is an important component in the GPI assessment. Indonesia has a fairly large armed forces and continues to modernize to improve its capabilities. A good military balance allows Indonesia to maintain stability and security both domestically and in the region. In addition, Indonesia’s active participation in various international peacekeeping missions demonstrates the country’s commitment to global security.
Indonesia continues to strive to improve its leadership in technology. Although still lagging behind several developed countries, Indonesia has shown significant progress in the adoption of digital technology and innovation. Government support in the form of policies and investments in the technology sector is the main driver of this development. Indonesian technology startups are also growing, showing great potential in this industry.
Indonesia’s geo-strategic position between two oceans and on international trade routes makes it a very strategically important country. This geographical location provides advantages in terms of access to global markets and a key role in maritime security. As the largest archipelagic country in the world, Indonesia has great potential to develop its maritime sector, including fisheries, marine energy, and transportation.
Indonesia is a major producer of various systemically important commodities such as palm oil, coal, tin, and rubber. These commodities are not only the main source of state revenue, but also play an important role in international trade. Global dependence on these commodities gives Indonesia economic and strategic leverage in the international market.
Indonesia’s financial strength is also an important factor in the GPI assessment. Macroeconomic stability, strong foreign exchange reserves, and prudent fiscal policy have helped Indonesia overcome various economic challenges. A growing financial sector and increasing integration with the global financial system enhance Indonesia’s position as an important player in the world economy.
Overall, Indonesia’s position at 34th in the 2023 Global Power Index reflects the strength and potential of this country. By continuing to strengthen the key components in the GPI, Indonesia has the potential to improve its ranking in the future and play a bigger role in the global order.
Consistent efforts in economic development, technological innovation, and strengthening the military and international diplomacy will be key for Indonesia to achieve its strategic vision and goals.
Source: Bappenas
