Waves of Change in Indonesia's Manufacturing Industry

ASEDP

No.42

Edited by Mari E. Pangestu, Yuri Sato
Published in 1997
CONTENTS

Preface / Mari E. Pangestu, Yuri Sato

Introduction / Mari E. Pangestu, Yuri Sato

Chapter 1

Transformation and Structural Change in Indonesia's Manufacturing Sector / Haryo Aswicahyono

1. Introduction
2. Changes in Policy Direction: 1967-1993
3. Indonesia's Manufacturing Sector in International Perspective
4. Structural Change in Indonesia's Manufacturing Sector
5. Exports
6. Ownership
7. Concentration
8. Conclusion
Chapter 2

The Indonesian Textile and Garment Industry: Structural Change and Competitive Challenges / Mari E. Pangestu

1. Introduction
2. Development of Industry and Structural Change
 2-1. History of the Textile and Garment Industry
 2-2. Evolving Structural Change
 2-3. Real Labor Productivity and Wage Trends
3. The Policy Environment and Impact on Textiles and Garments
 3-1. Deregulation and Export Orientation
 3-2. Composition of Exports
 3-3. Main Export Markets
 3-4. The Effect of Quotas
4. Challenges: Competitiveness and Structural Change
5. Conclusions
Chapter 3
1. Introduction
 1-1. Palm Oil in the Global Perspective
 1-2. Palm Oil in the Historical Perspective
 1-3. Structural transformation of the Industry
2. The Development of Indonesia's Domestic-Oriented Palm Oil Industry
 2-1. A Switch-Over From Export to Domestic Edible Oil Use
 2-2. The Government-Controlled System of Supply and Price
3. Impact of Export Orientation on the Structure of Palm Oil Industry
 3-1. background of Export Orientation
 3-2. An Entry of Domestic Private Capital into the Plantation Industry
 3-3. Vertical Integration fo Plantation and Processing Industry
 3-4. New Development of Processing Industry
 3-5. Changes of the Government-Controlled System
4. Competitiveness and Challenges of the Indonesian Palm Oil Industry
 4-1. Cost Advantages and Disadvantages
 4-2. Challenges for Competitiveness
 4-3. The Role of the Government
5. Conclusion
Chapter 4

The Development of the Motorcycle Industry In Indonesia / Thee Kian Wie

1. The Motorcycle Industry in the East Asian Countries
2. The Development of the Motorcycle Industry in Indonesia: An Overview
 2-1. Growth of the Motorcycle Industry
 2-2. Policies
 2-3. The Deletion Program of the Motorcycle Industry
 2-4. Assessment of the Deletion Program
3. Industrial Organization
4. Technology Transfer and Development
5. Concluding Remarks
Chapter 5

Development and Challenges of the Machinery Industry in Indonesia / Miranda S. Goeltom

1. Introduction and Development of the Machinery Industry
 1-1. Introduction
 1-2. Chronology of Machinery Industry Development in Indonesia
2. Industry Characteristic, 1980-1995
 2-1. Demand, Import and Export
 2-2. Production and Employment
 2-3. Productivity Performance
 2-4. Composition of Ownership
 2-5. Quality of Machine-Tools and Linkages
 2-6. Concentration Ratio in the Machinery Sector
3. Government Policy
4. Challenges Faced by the Machinery Industry
 4-1. Technological capability
 4-2. linkages and Subcontracting
 4-3. Procurement, Management and marketing
 4-4. Lack of Investment Financing and Incapability of Offering Suppliers' Credit
 4-5. Problems in Human Resource
 4-6. Lack of Infrastructure and R&D
5. Conclusion
Chapter 6

The Petrochemical Industry of Indonesia on the Threshold of a Progressive Growth / Djisman S. Simandjuntak

1. Introduction
2. International Perspective on Petrochemicals
 2-1. Raw Materials and Output
 2-2. The Structure of the World's Petrochemical Industry
3. The Petrochemical Industry of Indonesia
 3-1. Slow Progress until Late 1980s
 3-2. The Rising Demand for Petrochemical Products
 3-3. Toward Fast Growth in the 1990s
4. Key Policy Issues
Chapter 7

Conclusion / Mari E. Pangestu, Yuri Sato