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 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.

Bibliographic Details

Main Authors:	Rahardja, Sjamsu, Winkler, Deborah, Varela, G., Ing, Lili Yan
Format:	Policy Note biblioteca
Language:	English en_US
Published:	World Bank, Jakarta 2012-09
Subjects:	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,
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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