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Indonesia ranks 109th in DHL's latest global connectedness index

Jakarta Globe - March 19, 2024

Arif Perkasa, Jakarta – Indonesia ranks 109th out of 181 countries in DHL's latest global connectivity report. This figure is far below neighboring countries such as Singapore, which holds the top spot, and Malaysia, which ranks 26th.

This ranking is outlined in the DHL and Stern School of Business, New York University's Global Connectedness Index 2024 report, presented in New Delhi, India, on Wednesday, March 13. The report thoroughly examines the state and trajectory of globalization, including tracking how trade, capital, information, and people move around the world.

The report indicates that Indonesia still lags significantly in its level of connectivity compared to neighboring countries. However, the report emphasizes the immense potential for further increasing global flows.

According to the report, the current level of globalization is only at 25 percent, on a scale from 0 percent (meaning no flows cross national borders) to 100 percent (where borders and distances cease to be relevant).

Trade growth plays a crucial role in boosting global connectivity. The share of global output traded internationally reached a record high in 2022. After experiencing a slowdown in 2023, trade growth is projected to pick up again in 2024.

"Deglobalization is still only a risk, not a current reality. Geopolitical threats and policy shifts have led many to predict a fracturing of the world economy along geographic or geopolitical lines, or even a retreat from international to domestic business. But the latest data still show that international flows are growing and very few countries are cutting ties with their traditional counterparts," explained Steven Altman, Senior Researcher and Director of DHL's Globalization Initiative at the Stern School of Business, New York University.

"It is important to recognize the resilience of global flows because a lopsided focus on the threats to globalization could make deglobalization a self-fulfilling prophecy," he added.

Furthermore, Altman explained that globalization reached a record high in 2022 and remained close to that level in 2023 – despite a series of global shocks over the past decade, including the Covid-19 pandemic, wars in Ukraine and Gaza, and trade conflicts between the United States and China, as well as the UK's exit from the EU.

"These pieces of evidence firmly refute the notion that global flow growth has regressed," he said.

Meanwhile, DHL Express CEO John Pearson, said there are opportunities for development in each country to enhance global connectivity.

"It's about resilient and strong level of global connectedness. Being more interconnected is immense because it opens up numerous opportunities for building a better world," said John.

He further stated that market expansion and opportunity development will empower individuals, businesses, and entire countries to develop in unique ways.

This edition of the DHL Global Connectedness Report tracked the globalization of 181 countries from 2001 to 2022 based on nearly 9 million data points.

Source: https://jakartaglobe.id/business/indonesia-ranks-109th-in-dhls-latest-global-connectedness-inde