fbpx Policies to Support the Development of Indonesia’s Manufacturing Sector during 2020–2024: A Joint ADB–BAPPENAS Report | Asian Development Bank

Policies to Support the Development of Indonesia’s Manufacturing Sector during 2020–2024: A Joint ADB–BAPPENAS Report

Publication | January 2019
Policies to Support the Development of Indonesia’s Manufacturing Sector during 2020–2024: A Joint ADB–BAPPENAS Report

This report analyzes how Indonesia’s manufacturing sector could diversify and upgrade during the 2020–2024 period and beyond.

This is considered essential if Indonesia is to attain upper-middle-income status as soon as possible. The report asserts that policy makers and the private sector need to collaborate to identify the coordination failures that hamper the discovery of those products that Indonesia could successfully produce and export. It proposes a number of policies to expedite this process.

Contents 

  • Overview
  • Structural Transformation and the Relevance of the Manufacturing Sector
    • Indonesia’s “New Growth Normal”: The Need to Transform the Economy during 2020–2024
    • Indonesia’s Potential and Balance-of-Payments-Constrained Growth Rates: The Role of Manufacturing
    • Manufacturing as the Engine of Growth
    • A Historical Note on the Difficult Transformation of an Oil-Rich Economy
  • Indonesia’s Manufacturing Sector
    • Indonesia’s Manufacturing: A Sectoral Overview
    • Indonesia’s Manufacturing: A Firm-Level Perspective
    • Indonesia’s Reform Packages, Incentives to the Manufacturing Sector, and Industry 4.0
    • Constraints to Firm Growth: Evidence from Indonesian Manufacturing Firms
    • Developments in Indonesia’s Participation in Global Value Chains
    • Complexity, Global Value Chain Participation, and Upgrading in Indonesia
  • Prospects for Fiscal and Monetary Policy Coordination to Support Growth and Industrialization in Indonesia
    • How Can Fiscal and Monetary Policy Coordination Support Growth and Industrialization in Indonesia?
    • Indonesia’s Nonfinancial Corporate Sector, Financial Fragility, and Macroeconomic Policy Consistent with Faster Growth
  • Growth during 2020–2024 and Recommendations to Transform Indonesia’s Economy
    • How Fast Can Indonesia Realistically Grow during 2020–2024? Potential and Balance-of-Payments-Constrained Growth Rate Scenarios
    • Modern Industrial Policy
    • Recommendations to Transform Indonesia’s Economy during 2020–2024