Dawn of industrialisation? The Indonesian automotive industry

Natsuda, Kaoru, Otsuka, Kozo and Thoburn, John (2015) Dawn of industrialisation? The Indonesian automotive industry. Bulletin of Indonesian Economic Studies, 51 (1). pp. 47-68. ISSN 0007-4918

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This article traces the development of industrial policy towards the Indonesian motor industry within the automotive global value chain. Showing the current dominance of Japanese motor assemblers in Indonesia, it notes the rather undeveloped nature of the locally owned supporting industry, particularly compared with that of neighbouring Thailand. Most investment in auto-parts production has been by foreigners. Nevertheless, Indonesia's rapid domestic-market growth has allowed it to attract foreign automotive investment without having to offer excessively generous incentives. While the continued entry of foreign suppliers of auto parts into Indonesia offers opportunities for local suppliers to upgrade their productive capabilities, it also limits their chances of becoming first-tier suppliers themselves. Japanese automotive investors are optimistic about Indonesia's export potential, more so than Malaysia's.

Item Type: Article
Additional Information: Publisher Copyright: © 2015, Indonesia Project ANU.
Uncontrolled Keywords: automotive,global value chains,industrialisation,motor industry,development,economics and econometrics ,/dk/atira/pure/subjectarea/asjc/3300/3303
Faculty \ School: Faculty of Social Sciences > School of Global Development (formerly School of International Development)
Related URLs:
Depositing User: LivePure Connector
Date Deposited: 26 Nov 2021 01:39
Last Modified: 31 Jan 2024 03:17
URI: https://ueaeprints.uea.ac.uk/id/eprint/82332
DOI: 10.1080/00074918.2015.1016567

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