Why the Manufacturing Sector Still Matters for Growth and Development in Indonesia
Is Indonesia's manufacturing sector still relevant for growth and development? As a result of the last boom in global commodity prices between 2003 and 2008, resources in Indonesia shifted towards commodities and resource-based manufacturing a...
| Main Authors: | , , , |
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| Format: | Policy Note |
| Language: | English en_US |
| Published: |
World Bank, Jakarta
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/968621468044333596/Why-the-manufacturing-sector-still-matters-for-growth-and-development-in-Indonesia http://hdl.handle.net/10986/26721 |
| Summary: | Is Indonesia's manufacturing sector
still relevant for growth and development? As a result of
the last boom in global commodity prices between 2003 and
2008, resources in Indonesia shifted towards commodities and
resource-based manufacturing as these sectors seemed to
promise higher returns on investment. In recent quarters,
however, the manufacturing sector has exhibited stronger
output growth rates and attracted more investment. This note
argues that building on the current momentum of
manufacturing growth is critical for Indonesia's
development (i) to support the creation of
higher-productivity jobs, (ii) to sustain higher economic
growth and progress in structural change, and (iii) to
achieve long-term prosperity. Finally, this note also shows
how the Master Plan for the acceleration and expansion of
Indonesia's economic development (MP3EI) acknowledges
the importance of the manufacturing sector for economic growth. |
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