Industrial Policy in Indonesia: A Global Value Chain Perspective

Arbeitspapier

The gains of a country from participating in global value chains (GVCs) will depend on the productive activities taking place in its jurisdiction and their linkages to the domestic economy. Lead firms' decision on where to locate and how to coordinate production activities is influenced, among others, by industrial policies. On the one side, policy space provides governments with some leverage in guiding economic activities and influencing development outcomes. On the other hand, policy risks have the potential to adversely affect the outcomes. This study focuses on industrial policies in Indonesia, using the mineral sector as a mini case study. The case study assesses the Indonesian Government's recent effort to boost domestic value addition in the sector. This paper argues that the effectiveness of government policies in maximizing the gains from GVC participation depends not only on policy design, but also on policy consistency and coherence, effective implementation, and coordination.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADB Economics Working Paper Series ; No. 411

Classification and Topics

• Classification: Wirtschaft ; Economic Impacts of Globalization: Economic Development ; Economic Impacts of Globalization: Policy ; Industrial Policy; Sectoral Planning Methods ; Industry Studies: Primary Products and Construction: General ; Industrial Policy
• Subject: industrial policy ; Indonesia ; global value chain ; upgrading

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Tijaja, Julia ; Faisal, Mohammad
• Event: Veröffentlichung
• (who): Asian Development Bank (ADB)
• (where): Manila
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/109506
• Last update: 10.03.2025, 11:45 AM CET