Department Ritsumeikan Asia Pacific University College of Asia Pacific Studies Position Professor
|Research paper (Academic/Professional Journal)
|Dawn of Industrialisation?
the Indonesian Automotive Industry
|Bulletin of Indonesian Economic Studies
|Volume, Issue, Page
|Author and coauthor
|John Thoburn, Kaoru Natsuda
|This paper 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, it notes the rather undeveloped nature of the locally-owned supporting industry, particularly compared to neighbouring Thailand and Malaysia. 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 entry of international mega-suppliers of automotive parts into Indonesia offers opportunities for local suppliers to upgrade their productive capabilities, it also limits their chances to become first-tier suppliers themselves.