Indonesia has long aspired to become an upper-middle income economy and is now seeking ways to kickstart growth. The government is particularly interested in the role of the manufacturing sector and how to diversify and upgrade industry — which, in parallel, means reviewing industrial, fiscal and monetary policies in support of higher growth rates.
Indonesia’s Ministry of National Development Planning (Bappenas) worked with the Asian Development Bank and a range of international experts, including senior researchers from UNU-MERIT, on a new policy report to develop Indonesia’s manufacturing sector over the period 2020-2024.
Prof. Bart Verspagen and Dr. Neil Foster-McGregor worked in particular on Chapters 5, 9 and 10, focusing respectively on ‘Indonesia’s Manufacturing: A Sectoral Overview’, ‘Developments in Indonesia’s Participation in Global Value Chains’, and ‘Complexity, Global Value Chain Participation & Upgrading in Indonesia’.
Overall this report aims to be a reference point in discussions and policy analyses in Indonesia. Taken together, the chapters provide a coherent, comprehensive, and in-depth assessment of key aspects of Indonesia’s economy today, and of the challenges it faces to grow faster during the coming years.
The opinions expressed here are the authors’ own; they do not necessarily reflect the views of UNU.
ADB; Flickr / Prayitno