We use cookies on this website to give you a better user experience. By continuing to browse the site, you are agreeing to our use of cookies. Learn more

Indonesian Manufacturing Sector Review 2021

Indonesian Manufacturing Sector Review 2021
30 December 2021
Dionisius A. Narjoko, Samuel Nursamsu, Haryo Aswicahyono, Dradjad Irianto, Chandra Tri Putra, Dandy Rafitrandi, Kiki Verico, Fithra Faisal Hastiadi, M. Dian Revindo, Asosiasi Pengusaha Indonesia (APINDO) Research Institute, Purnomo Yusgiantoro Center (PYC), Rumah Riset Presisi Indonesia
Leonardo A.A. Teguh Sambodo, Yogi Harsudiono, Dionisius A. Narjoko, Samuel Nursamsu

Print Article:

The book shares critical insights regarding policy choices and strategies for undertaking structural transformation in the manufacturing sector. This transformation must consider the need to accelerate the improvement of human capital, expansion of innovation and adoption of advanced technology, and cost reduction supported by access to a competitive input market, especially for energy. All these strategies need to be strengthened by a conducive financial system for manufacturing investment, integration and improvement of the quality of industrial infrastructure, as well as facilitation for manufacturers to expand exports.

Numerous industrial policies have been listed in the 2020-2024 National Medium-Term Development Plan and will continue to be assessed through structural transformation driven by the manufacturing sector. ‘The strategy is, first, to increase investment in human resources to get us ready to face industry 4.0. Second, the development of new industries, including those related to the production of medical or pharmaceutical devices. Third, to strengthen product and process technology for small and medium enterprises (MSMEs) as supporting industries.

 This book also highlights several success stories or opportunities for improvement. This study finds that Indonesia maximized the ASEAN-Australia and New Zealand FTA (AANZFTA) trade agreement facilities and increased its participation in the global value chain for the automotive industry’. Prof Nishimura on this occasion also expressed ERIA’s strong commitment to support the Indonesian Presidency in next year's G20.

 The impact of the COVID-19 pandemic in the industrial sector is also one of the bases for analysis to ensure that various strategies are carefully formulated to support the acceleration of re-industrialisation, including the acceleration of economic recovery. We hope that this study will be a good start for the efforts of Bappenas and the Indonesian government, where re-industrialisation is also an important part of the efforts of the six major strategies of Indonesia's economic transformation, Towards Indonesia's Vision 2045.

Report is in Indonesian Language can be downloaded below:

Kajian Sektor Manufaktur Indonesia 2021

Search ERIA.org

Latest Multimedia

Indonesia's ASEAN Chairmanship 2023 High-Level Policy Dialogue: ASEAN Digital Community 2045

ERIA Knowledge Lab Discusses Scaling Up Innovation and Digital Technology Ecosystem

Is ASEAN Ready for Electric Vehicles? | ASEAN Insights Podcast

Related Articles

Indonesia, Global Economy Outlook, pandemic, COVID-19
10 January 2023
Editor(s)/Author(s): Ivana Markus, Pyan Amin Muchtar
The global economy is facing a perfect storm as a result of the coronavirus disease (COVID-19) pandemic, prolonged[...]
industry and manufacturing, Innovation and Technology
18 February 2015
Editor(s)/Author(s): Rajah Rasiah, Rafat Beigpoor Shahrivar, Abdusy Syakur Amin
 This study analyses the influence of host-site institutional support, foreign ownership and regional production linkages on[...]