Publication: Export Competitiveness in Indonesia's Manufacturing Sector
Date
2012-09
ISSN
Published
2012-09
Author(s)
Abstract
The Indonesian manufacturing sector
experienced a 'lost decade' in the aftermath of
the Asian financial crisis. While many believe that the
sector is now in inexorable decline, this note argues that
there may be a 'second chance' for export
manufacturing, given Indonesia's relative cost
competitiveness, the rapidly growing domestic market, and
the opportunities of integrating into value chains
facilitated by new regional growth poles. Simply relying on
these factors, however, may result in short-term growth but
will ultimately lead back to stagnation. Instead, Indonesia
must use this opportunity to make an aggressive effort to
improve manufacturing sector competitiveness, including
addressing traditional investment climate issues, but most
importantly, weaknesses in the quality and innovation
environment. It is through this that the Indonesian
manufacturing sector will begin to move up the value chain,
build deep and competitive domestic value chains, and
deliver quality and sustainable job opportunities.
Citation
“Winkler, Deborah; Farole, Thomas. 2012. Export Competitiveness in Indonesia's Manufacturing Sector. © World Bank, Jakarta. http://hdl.handle.net/10986/26719 License: CC BY 3.0 IGO.”