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Changing Industrial Structures and Business Strategies in Indonesia



Edited by SATO Yuri
Published in 1998


Contents pdf (337KB)
Preface pdf (157KB) / Yuri Sato
Introduction pdf (312KB) / Yuri Sato
Chapter 1:
The Indonesian Textile and Garment Industry: Structural Change and Corporate Responses / Mari E. Pangestu
1. Introduction
2. The Policy and External Environment Facing the Industry
 2-1. Early Phases of Import Substitution
 2-2. Liberalization After the Oil Boom
 2-3. Current Policy Environment
 2-4. The MFA and External Development
3. Structural Changes in the Industry
 3-1. output and Employment
 3-2. Structure of Exports
 3-3. Major Export Markets
 3-4. Role of Foreign Investment and Firm Specific Characteristics
4. Challenges to Competitiveness at the Industry Wide Level
 4-1. Rising Wage Cost
 4-2. Increased Competition and Comparisons with Competitors
 4-3. Net Export Rations and Trade Specialization
5. Two case Studies: how will Local Companies Respond?
 5-1. Company A
 5-2. Textile Group B
6. Conclusion

Chapter 2:
The Indonesian Pulp and Paper Industry: Transforming Family Businesses To International Institutions / Farid Harianto, Azis Armand, Wisnu W. Soedibjo
1. Background
2. Growth of Industry Capacities: Driven by Both Domestic and Export Market
3. Government Policy
4. Imperatives and Characteristices of the Pulp and Paper Industry
 4-1. Commodity Products: Firms are rice Takers and Costs Matter
 4-2. Cyclical Market: Supply and Demand Imbalance
 4-3. Vertical Integration
 4-4. Product and Geographical Market Diversification
 4-5. High Capital Intensity: Efficient Technology and Utilization
 4-6. Concentration of Assets
5. Case Studies
 5-1. APP (Asia Pulp And Paper) of the Sinar mas Group
 5-2. APRIL (Asia Pacific Resources International) of the Raja Garuda Mas Group
6. Discussion and Conclusions

Chapter 3:
The Pharmaceutical Industry in Indonesia: Combining Export Promotion and Import Substitution / Alexander Irwaan, Yosef Ardi
1. Introduction
2. The Structure of the Pharmaceutical Industry in Indonesia
3. Lack of Research and Development
4. Dependent on Imported Raw Materials
5. Investment and Trade Deficit
6. A Heavy Burden of Foreign Debts
7. Conclusion

Chapter 4:
The Development of Indonesia Steel Industry: Opportunities and Challenges / Bob Widyahartono, Tulus Tambunan
1. Introduction
2. Types and Categories of Steel Products
3. The Development of the National Steel industry
 3-1. Development and Growth of Steel Production
 3-2. Demand for Steel Products
 3-3. Import Dependency for Raw Material
 3-4. Export Performance
4. A SWOT Analysis of the Industry
 4-1. Strength s
 4-2. Weaknesses
 4-3. Opportunities
 4-4. Threats
5. Government Policy
 5-2. Deregulation Policy
6. Case Studies: Krakatau Steel and Bakrie Group's Steel Industry
 6-1. introduction
 6-2. Krakatau Steel
 6-3. Bakrie Group
7. Conclusions

Chapter 5:
1. Introduction
2. The Structure of the Industry: An Overview
 2-1. The Scope of Machinery Component Industry
 2-2. Development of Component Industry as a New Major Material Process Industry
 2-3. Three Major component Manufacturing Industries
 2-4. Indonesian Component Industry in the International Perspective
 2-5. The Structure of Producers
 2-6. Imported contents and Export Performance
3. Subcontracting Networks in the Industry: case Studies
 3-1. Subcontracting Network in the Component Industry: Lessons for Indonesia
 3-2. The Structure of Subcontracting Network for the Honda Motorcycles
 3-3. Major Characteristics of Subcontracting Network of the Honda Motorcycles
 3-4. Developing its own Subcontractors: The Case of PT Adhi Wijayacitra
 3-5. An Attempot of Suppliers' Grouping: The Case of PT Usbersa Mitra Logam
 3-6. Findings from case Studies
4. Conclusion