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Development of Indonesian Automotive Industry
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Institusion
Universitas Padjadjaran
Author
Aini, Hidia
Subject
 
Datestamp
2021-11-23 00:00:00 
Abstract :
During the last decade, Indonesia and other Southeast Asian countries have shown significant development in the automotive industry. Recently, Thailand is the only ASEAN country that is considered to have global competitiveness in term of the automotive industry. However, it is believed that the Indonesia automotive industry has a good prospect to also reach global competitiveness in the mean future and it is an important challenge for the Indonesian government to achieve the goal of transforming its automotive industry to be more competitive in the regional and global markets. The purposes of this study are to understand how the automotive industry of Indonesia has developed and how global competitiveness of the industry has changed during the last decade compared to neighboring countries (Thailand, Malaysia, the Philippines, and Vietnam) using quantitative analysis through the Revealed Comparative Advantage (RCA) index analysis and competitiveness matrix approach. As the result, with the positive trend of its RCA index and the increasing competitiveness performance and potential during the last decade, the Indonesian automotive industry is likely to improve and gain global competitiveness in the mean future. However, there are still many challenges for the government to be concern with related to the improvement of the automotive global competitiveness of Indonesia, such as master plan and policies for developing an automotive industry that is favorable for the improvement of the industry, and infrastructure and skilled labor improvement. 

Institution Info

Universitas Padjadjaran