Industrial Policy in Indonesia: A Global Value Chain Perspective
Tijaja, Julia; Faisal, Mohammad | October 2014
Abstract
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.
Citation
Tijaja, Julia; Faisal, Mohammad. 2014. Industrial Policy in Indonesia: A Global Value Chain Perspective. © Asian Development Bank. http://hdl.handle.net/11540/1279. License: CC BY 3.0 IGO.ISSN
2313-6537
2313-6545
Keywords
Governance
Good Governance
Governance Approach
Governance Capacity
Governance Models
Governance Quality
Regional Policy
Regional Perspectives
Regional Government
Regional Development
Business Management
Institutional
ramework
Business Ethics
Regional Plans
Project finance
Development Bank
Bureaucracy
Cabinet system
Common good
Executive power
Government
Separation of powers
Transparency in government
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Citable URI
http://hdl.handle.net/11540/1279Metadata
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