IDEAS home Printed from https://ideas.repec.org/a/taf/bindes/v51y2015i1p47-68.html
   My bibliography  Save this article

Dawn of Industrialisation? The Indonesian Automotive Industry

Author

Listed:
  • Kaoru Natsuda
  • Kozo Otsuka
  • John Thoburn

Abstract

This article traces the development of industrial policy towards the Indonesian motor industry within the automotive global value chain. Showing the current dominance of Japanese motor assemblers in Indonesia, it notes the rather undeveloped nature of the locally owned supporting industry, particularly compared with that of neighbouring Thailand. Most investment in auto-parts production has been by foreigners. Nevertheless, Indonesia's rapid domestic-market growth has allowed it to attract foreign automotive investment without having to offer excessively generous incentives. While the continued entry of foreign suppliers of auto parts into Indonesia offers opportunities for local suppliers to upgrade their productive capabilities, it also limits their chances of becoming first-tier suppliers themselves. Japanese automotive investors are optimistic about Indonesia's export potential, more so than Malaysia's.

Suggested Citation

  • Kaoru Natsuda & Kozo Otsuka & John Thoburn, 2015. "Dawn of Industrialisation? The Indonesian Automotive Industry," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 51(1), pages 47-68, April.
    • Handle: RePEc:taf:bindes:v:51:y:2015:i:1:p:47-68
    DOI: 10.1080/00074918.2015.1016567
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00074918.2015.1016567
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/00074918.2015.1016567?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peter Nolan, 2012. "Is China Buying the World?," Challenge, Taylor & Francis Journals, vol. 55(2), pages 108-118.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kozo Otsuka & Kaoru Natsuda, 2016. "The Determinants Of Total Factor Productivity In The Malaysian Automotive Industry: Are Government Policies Upgrading Technological Capacity?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-18, September.
    2. Palma, J. & Pincus, J., 2022. "Is Southeast Asia falling into a Latin American style “middle-income trap†?," Cambridge Working Papers in Economics 2267, Faculty of Economics, University of Cambridge.
    3. Padang Wicaksono & Lionel Priyadi, 2018. "Does Manufacturing Sophistication Lead to Higher Demand for Vocational Workers? Evidence from Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 64, pages 59-72, Juni.
    4. Tom Barnes, 2017. "Industry policy in Asia’s demographic giants: China, India and Indonesia compared," The Economic and Labour Relations Review, , vol. 28(2), pages 218-233, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Williams, Glynne & Davies, Steve & Lamptey, Julius & Tetteh, Jonathan, 2017. "Chinese multinationals: Threat to, or opportunity for, trade unions? The case of Sinohydro in Ghana," GLU Working Papers 46, Global Labour University (GLU).
    2. Peter Nolan, 2015. "The west and China: globalisation and competition in financial services," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 13(2), pages 87-104, May.
    3. Kozo Otsuka & Kaoru Natsuda, 2016. "The Determinants Of Total Factor Productivity In The Malaysian Automotive Industry: Are Government Policies Upgrading Technological Capacity?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-18, September.
    4. Fu, Xialoan & Hou, Jun & Sanfilippo, Marco, 2017. "Highly skilled returnees and the internationalization of EMNEs: Firm level evidence from China," International Business Review, Elsevier, vol. 26(3), pages 579-591.
    5. Kaoru Natsuda & John Thoburn, 2013. "Industrial policy and the development of the automotive industry in Thailand," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(3), pages 413-437.
    6. Pengfei Hou, 2024. "Two tigers in one mountain: Europeanising the Western Balkans amid China’s engagement," Asia Europe Journal, Springer, vol. 22(2), pages 165-183, June.
    7. Jean-Christophe Defraigne, 2017. "Chinese outward direct investments in Europe and the control of the global value chain," Asia Europe Journal, Springer, vol. 15(2), pages 213-228, June.
    8. Miaoxi Zhao & Xingjian Liu & Ben Derudder & Ye Zhong & Wei Shen, 2015. "Mapping producer services networks in mainland Chinese cities," Urban Studies, Urban Studies Journal Limited, vol. 52(16), pages 3018-3034, December.
    9. Bolesta, Andrzej, 2015. "Creating a Post-Socialist Developmental State: The Political Economy of China’s Transformation and Development," Studia z Polityki Publicznej / Public Policy Studies, Warsaw School of Economics, vol. 2(4), pages 1-24, December.
    10. Jo Le Goff & Christian Milelli, 2012. "European Inroads by BRICs' firms: the M&A avenue," Post-Print hal-01411712, HAL.
    11. Rikap, Cecilia, 2022. "Becoming an intellectual monopoly by relying on the national innovation system: the State Grid Corporation of China's experience," Research Policy, Elsevier, vol. 51(4).
    12. Justin Robertson, 2017. "Emergent new finance: hedge funds and private equity funds in East Asia," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 22(4), pages 626-646, October.
    13. Aktoty Aitzhanova & Shigeo Katsu & Johannes F. Linn & Vladislav Yezhov (ed.), 2014. "Kazakhstan 2050: Toward a Modern Society for All," Books, Emerging Markets Forum, edition 1, number kazakh2050, Summer.
    14. Peter Hertenstein & Dylan Sutherland & John Anderson, 2017. "Internationalization within networks: Exploring the relationship between inward and outward FDI in China’s auto components industry," Asia Pacific Journal of Management, Springer, vol. 34(1), pages 69-96, March.
    15. Dylan Sutherland & John Anderson & Peter Hertenstein, 2018. "Is the Strategic Asset Seeking Investment Proclivity of Chinese MNEs Different to that of Developed Market MNEs? A Comparative Analysis of Location Choice and Orientation," Management International Review, Springer, vol. 58(6), pages 911-933, December.
    16. Bonnín Roca, Jaime & Vaishnav, Parth & Morgan, M.Granger & Mendonça, Joana & Fuchs, Erica, 2017. "When risks cannot be seen: Regulating uncertainty in emerging technologies," Research Policy, Elsevier, vol. 46(7), pages 1215-1233.
    17. Bryl Łukasz, 2020. "Long-term Development of National Human Capital. Evidence from China and Poland," Journal of Intercultural Management, Sciendo, vol. 12(3), pages 30-66, September.
    18. Xavier Richet, 2019. "Geographical and Strategic Factors in Chinese Foreign Direct Investment in Europe," Asian Economic Papers, MIT Press, vol. 18(2), pages 102-119, Summer.
    19. C. Rowley & M. Warner, 2013. "Strategic challenges and issues for Chinese managers and management in the global economy: conclusions," Asia Pacific Business Review, Taylor & Francis Journals, vol. 19(4), pages 617-624, October.
    20. Nahm, Jonas & Steinfeld, Edward S., 2014. "Scale-up Nation: China’s Specialization in Innovative Manufacturing," World Development, Elsevier, vol. 54(C), pages 288-300.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:bindes:v:51:y:2015:i:1:p:47-68. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CBIE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.