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...
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| Format: | Policy Note |
| Language: | English en_US |
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World Bank, Jakarta
2017
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| 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 |
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okr-10986-267212021-04-23T14:04:37Z Why the Manufacturing Sector Still Matters for Growth and Development in Indonesia Rahardja, Sjamsu Winkler, Deborah Varela, G. Ing, Lili Yan ACCOUNTING AGGLOMERATION AGRICULTURE BUSINESS CLIMATE BUYERS CAPABILITIES CAPABILITY COMMODITIES COMMODITY COMMUNICATION TECHNOLOGIES COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPUTERS CONNECTIVITY CONSUMERS COPYRIGHT DISTRIBUTION NETWORKS DRIVERS ECONOMIC ACTIVITIES ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ELASTICITY EMPLOYMENT EMPLOYMENT CREATION EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EQUIPMENT EXPORT GROWTH EXPORTS FEMALE EMPLOYMENT FINAL GOODS FINANCIAL CRISIS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN TRADE GDP PER CAPITA GLOBAL ECONOMY GLOBALIZATION GOVERNMENT POLICIES GROWTH PATH GROWTH POTENTIAL GROWTH STRATEGIES HUMAN RESOURCES INCOME INDUSTRIAL DEVELOPMENT INDUSTRIALIZATION INFORMATION TECHNOLOGY INNOVATION INTERNATIONAL TRADE JOB CREATION LABOR FORCE LABOR MIGRATION LABOR PRODUCTIVITY LIVING STANDARDS MACHINERY MANUFACTURED GOODS MANUFACTURERS MANUFACTURING MANUFACTURING COMPANIES MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MANUFACTURING PRODUCTION MANUFACTURING SECTOR MARKET POTENTIAL NATURAL RESOURCE NATURAL RESOURCES NETWORKS POLICY FORMULATION PRODUCT DESIGN PRODUCTION NETWORKS PRODUCTION PROCESSES PRODUCTION TECHNIQUES PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC ADMINISTRATION R&D REAL GDP REAL WAGES RESULT SEAPORTS SKILLED WORKERS STRUCTURAL CHANGE SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUPPORTS TECHNOLOGY TRANSFERS TRADE POLICY TRANSACTION VALUE ADDED VALUE CHAIN VALUE CHAINS WAGE INCREASES WAGES WEAR WTO 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. 2017-05-23T15:35:28Z 2017-05-23T15:35:28Z 2012-09 Policy Note 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 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Jakarta Economic & Sector Work :: Policy Note Economic & Sector Work East Asia and Pacific Indonesia |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AGGLOMERATION AGRICULTURE BUSINESS CLIMATE BUYERS CAPABILITIES CAPABILITY COMMODITIES COMMODITY COMMUNICATION TECHNOLOGIES COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPUTERS CONNECTIVITY CONSUMERS COPYRIGHT DISTRIBUTION NETWORKS DRIVERS ECONOMIC ACTIVITIES ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ELASTICITY EMPLOYMENT EMPLOYMENT CREATION EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EQUIPMENT EXPORT GROWTH EXPORTS FEMALE EMPLOYMENT FINAL GOODS FINANCIAL CRISIS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN TRADE GDP PER CAPITA GLOBAL ECONOMY GLOBALIZATION GOVERNMENT POLICIES GROWTH PATH GROWTH POTENTIAL GROWTH STRATEGIES HUMAN RESOURCES INCOME INDUSTRIAL DEVELOPMENT INDUSTRIALIZATION INFORMATION TECHNOLOGY INNOVATION INTERNATIONAL TRADE JOB CREATION LABOR FORCE LABOR MIGRATION LABOR PRODUCTIVITY LIVING STANDARDS MACHINERY MANUFACTURED GOODS MANUFACTURERS MANUFACTURING MANUFACTURING COMPANIES MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MANUFACTURING PRODUCTION MANUFACTURING SECTOR MARKET POTENTIAL NATURAL RESOURCE NATURAL RESOURCES NETWORKS POLICY FORMULATION PRODUCT DESIGN PRODUCTION NETWORKS PRODUCTION PROCESSES PRODUCTION TECHNIQUES PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC ADMINISTRATION R&D REAL GDP REAL WAGES RESULT SEAPORTS SKILLED WORKERS STRUCTURAL CHANGE SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUPPORTS TECHNOLOGY TRANSFERS TRADE POLICY TRANSACTION VALUE ADDED VALUE CHAIN VALUE CHAINS WAGE INCREASES WAGES WEAR WTO |
| spellingShingle |
ACCOUNTING AGGLOMERATION AGRICULTURE BUSINESS CLIMATE BUYERS CAPABILITIES CAPABILITY COMMODITIES COMMODITY COMMUNICATION TECHNOLOGIES COMPARATIVE ADVANTAGE COMPARATIVE ADVANTAGES COMPUTERS CONNECTIVITY CONSUMERS COPYRIGHT DISTRIBUTION NETWORKS DRIVERS ECONOMIC ACTIVITIES ECONOMIC COOPERATION ECONOMIC DEVELOPMENT ECONOMIC GEOGRAPHY ECONOMIC GROWTH ELASTICITY EMPLOYMENT EMPLOYMENT CREATION EMPLOYMENT GROWTH EMPLOYMENT OPPORTUNITIES EQUIPMENT EXPORT GROWTH EXPORTS FEMALE EMPLOYMENT FINAL GOODS FINANCIAL CRISIS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FOREIGN TRADE GDP PER CAPITA GLOBAL ECONOMY GLOBALIZATION GOVERNMENT POLICIES GROWTH PATH GROWTH POTENTIAL GROWTH STRATEGIES HUMAN RESOURCES INCOME INDUSTRIAL DEVELOPMENT INDUSTRIALIZATION INFORMATION TECHNOLOGY INNOVATION INTERNATIONAL TRADE JOB CREATION LABOR FORCE LABOR MIGRATION LABOR PRODUCTIVITY LIVING STANDARDS MACHINERY MANUFACTURED GOODS MANUFACTURERS MANUFACTURING MANUFACTURING COMPANIES MANUFACTURING INDUSTRIES MANUFACTURING INDUSTRY MANUFACTURING PRODUCTION MANUFACTURING SECTOR MARKET POTENTIAL NATURAL RESOURCE NATURAL RESOURCES NETWORKS POLICY FORMULATION PRODUCT DESIGN PRODUCTION NETWORKS PRODUCTION PROCESSES PRODUCTION TECHNIQUES PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC ADMINISTRATION R&D REAL GDP REAL WAGES RESULT SEAPORTS SKILLED WORKERS STRUCTURAL CHANGE SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS SUPPORTS TECHNOLOGY TRANSFERS TRADE POLICY TRANSACTION VALUE ADDED VALUE CHAIN VALUE CHAINS WAGE INCREASES WAGES WEAR WTO Rahardja, Sjamsu Winkler, Deborah Varela, G. Ing, Lili Yan Why the Manufacturing Sector Still Matters for Growth and Development in Indonesia |
| geographic_facet |
East Asia and Pacific Indonesia |
| description |
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. |
| format |
Policy Note |
| author |
Rahardja, Sjamsu Winkler, Deborah Varela, G. Ing, Lili Yan |
| author_facet |
Rahardja, Sjamsu Winkler, Deborah Varela, G. Ing, Lili Yan |
| author_sort |
Rahardja, Sjamsu |
| title |
Why the Manufacturing Sector Still Matters for Growth and Development in Indonesia |
| title_short |
Why the Manufacturing Sector Still Matters for Growth and Development in Indonesia |
| title_full |
Why the Manufacturing Sector Still Matters for Growth and Development in Indonesia |
| title_fullStr |
Why the Manufacturing Sector Still Matters for Growth and Development in Indonesia |
| title_full_unstemmed |
Why the Manufacturing Sector Still Matters for Growth and Development in Indonesia |
| title_sort |
why the manufacturing sector still matters for growth and development in indonesia |
| publisher |
World Bank, Jakarta |
| publishDate |
2017 |
| url |
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 |
| _version_ |
1764462557789159424 |