1st Edition

The Indonesian Economy Trade and Industrial Policies

    295 Pages 101 B/W Illustrations
    by Routledge

    314 Pages 101 B/W Illustrations
    by Routledge

    Against the backdrop of growing anti-globalisation sentiments and increasing fragmentation of the production process across countries, this book addresses how the Indonesian economy should respond and how Indonesia should shape its trade and industrial policies in this new world trade environment. The book introduces evaluation not on tariffs but on new trade instruments such as non-tariff measures (SPS, TBT, export measures and beyond border measures), and looks at industrial policies from a broader perspective such as investment, accessing inputs, labour, services, research and innovation policies.

    1 Introduction (Lili Yan Ing)

    2 Export Specialization in East and Southeast Asia: Lessons from China's ‘Exceptional’ Development (Gordon Hanson)

    3 Indonesia’s Trade Policy in the New World Trade (Lili Yan Ing, Mari Elka Pangestu and Olivier Cadot)

    4 Indonesian Industrialization and Industrial Policy: Catching Up, Slowing Down, Muddling Through (Haryo Aswichayono and Hal Hill)

    5 Why is Indonesia Left Behind in Regional Production Networks? (Ben Shepherd and Moekti P. Soejachmoen)

    6 Development of Exports in Indonesian Manufacturing: A Look at Micro Data (Ari Kuncoro)

    7 Indonesia’s Manufacturing Export Competitiveness: A Unit Labour Cost Analysis (Rully Prassetya)

    8 Labour Market and Firm Competitiveness in Indonesia: Issues and Challenges (Raden Muhammad Purnagunawan, Devanto Shasta Pratomo and Daniel Suryadarma)

    9 Assessing the Impact of Local Content Requirements on Indonesia’s Manufacturing Industry (Siwage Dharma Negara)

    10 Foreign Direct Investment and Value Added in Indonesia (Fredrik Sjöholm)

    11 Innovation in the Manufacturing and Service Sectors – Determinants and Challenges (Günther G. Schulze and Ute Schulze)


    Lili Yan Ing is Senior Economist at the Economic Research Institute for ASEAN and East Asia (ERIA) and leads projects on trade and investment. She is the founder of the Indonesian Economy (www.indonesianeconomy.com) She is also a  Senior Lecturer at the Faculty of Economics, University of Indonesia. She served as Senior Advisor on Trade and Investment at the President’s Office of the Republic of Indonesia from 2015 to 2016.

    Gordon H. Hanson is Professor of Economics at the University of California, San Diego (UCSD) and holds the Pacific Economic Cooperation Chair in International Economic Relations at UCSD’s School of Global Policy and Strategy.

    Sri Mulyani Indrawati is Minister of Finance of Indonesia since July 2016. She previously served in the same post from 2005 to 2010. She was Managing Director of the World Bank Group from 2010 to 2016.

    'This book combines very senior and renowned academics and practitioners with rising stars, and has a nice balance of Indonesian and foreign authors. [...] In terms of quality of research, analysis, and exposition, most of the chapters place Indonesia’s experiences in an historical and comparative context... They also present nice combinations of sound conceptual frameworks and empirical data, offering good examples of evidence-based policy analysis. [...] This book’s illuminating analyses and pragmatic recommendations merit serious consideration by Indonesia’s leaders as Indonesia prepares for its next presidential election.' — Asian-Pacific Economic Literature, Volume 32 Issue 2, p144-146