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Export Competitiveness in Indonesia's Manufacturing Sector
| Content Provider | Semantic Scholar |
|---|---|
| Author | Farole, Thomas Winkler, Deborah Elisabeth |
| Copyright Year | 2012 |
| Abstract | Through a foundation of sound macroeconomic management and political stability, the Indonesian economy grew by an average of almost 6 percent annually between 2004 and 2008; and despite the global economic crisis, it maintained a 4.5 percent growth rate in 2009. Fuelled by agricultural and natural resource commodities, Indonesia's non-oil and gas exports grew 22.6 percent annually between 2004 and 2008, more than double their rate in the 2000-2004 period. This period of growth has contributed to significant job creation for the first time since the Asian crisis, with formal sector employment growing 2.2 percent annually in the 2004-2008 periods. Despite its rich natural resources, Indonesia has not made significant progress in transforming its exports of raw materials into processed products. Thus, in the absence of robust growth from the manufacturing sector, there is a concern that the country will be unable to generate enough jobs. Moreover, in the absence of a competitive, growing manufacturing sector, long-term economic growth is likely to become increasingly dependent upon global commodity markets over which Indonesia has little control. It is therefore critical that Indonesia takes following policy actions: (1) raising productivity by addressing labor market rigidities and improving access to skills development and training, as well as improving the quality of management of firms; (2) improving non-price competitiveness factors, in particular by addressing issues related to infrastructure and trade facilitation; (3) improving the business regulatory environment to promote a more sophisticated domestic market; and (4) improving product quality to meet recognized global and market standards. |
| Starting Page | 1 |
| Ending Page | 71 |
| Page Count | 71 |
| File Format | PDF HTM / HTML |
| DOI | 10.1596/26719 |
| Alternate Webpage(s) | http://documents.worldbank.org/curated/en/610101468269397157/pdf/731230NWP0Full0C0disclosed010090120.pdf |
| Alternate Webpage(s) | http://siteresources.worldbank.org/EASTASIAPACIFICEXT/Resources/226300-1349835451376/Full-PN2-Manufacturing.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
