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Indonesian Industrialization: A Latecomer Adjusting to Crises

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Listed:
  • Haryo Aswicahyono
  • Hal Hill
  • Dionisius Narjoko

Abstract

This paper examines Indonesia's industrialization performance and policies, including its latecomer status, its generally rapid growth since the mid-1960s, its pronounced policy and performance episodes, and its ambivalent embrace of globalization. Particular attention is accorded to the deep economic-political crisis of 1997-98 and its aftermath, with the benefit of a rich, firm level database. The crisis resulted in slower industrial growth, less industrial mobility, and sluggish formal sector employment growth.

Suggested Citation

  • Haryo Aswicahyono & Hal Hill & Dionisius Narjoko, 2011. "Indonesian Industrialization: A Latecomer Adjusting to Crises," WIDER Working Paper Series wp-2011-053, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2011-053
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    File URL: https://www.wider.unu.edu/sites/default/files/wp2011-053.pdf
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    References listed on IDEAS

    as
    1. Wei Ding & Domac, Ilker & Ferri, Giovanni, 1998. "Is there a credit crunch in East Asia?," Policy Research Working Paper Series 1959, The World Bank.
    2. Hal HILL & Takashi SHIRAISHI, 2007. "Indonesia After the Asian Crisis," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(1), pages 123-141, June.
    3. Angus Maddison & D. S. Prasada & William Shepherd (ed.), 2002. "The Asian Economies in the Twentieth Century," Books, Edward Elgar Publishing, number 1721.
    4. M. Chatib Basri & Hal Hill, 2004. "Ideas, Interests and Oil Prices: The Political Economy of Trade Reform During Soeharto's Indonesia," The World Economy, Wiley Blackwell, vol. 27(5), pages 633-655, May.
    5. Haryo Aswicahyono & Hal Hill & Dionisius Narjoko, 2010. "Industrialisation after a Deep Economic Crisis: Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1084-1108.
    6. Dionisius Narjoko & Hal Hill, 2007. "Winners and Losers during a Deep Economic Crisis: Firm‐level Evidence from Indonesian Manufacturing," Asian Economic Journal, East Asian Economic Association, vol. 21(4), pages 343-368, December.
    7. Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
    8. H.H. Aswicahyono & Kelly Bird & Hal Hill, 1996. "What happens to industrial structure when countries liberalise? Indonesia since the mid‐1980s," Journal of Development Studies, Taylor & Francis Journals, vol. 32(3), pages 340-363.
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    Cited by:

    1. Vikram Nehru, 2013. "Manufacturing in India and Indonesia: performance and policies," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 49(1), pages 35-60, April.
    2. Shrestha, Rashesh & Coxhead, Ian, 2018. "Export boom, employment bust? The paradox of Indonesia's displaced workers, 2000-14," CEI Working Paper Series 2018-6, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    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. Mohammad Zulfan Tadjoeddin & Ilmiawan Auwalin & Anis Chowdhury, 2016. "Revitalizing Indonesia’s manufacturing: the productivity conundrum," Departmental Working Papers 2016-20, The Australian National University, Arndt-Corden Department of Economics.
    5. Barış Alpaslan & King Yoong Lim & Yan Song, 2021. "Growth and welfare in mixed health system financing with physician dual practice in a developing economy: a case of Indonesia," International Journal of Health Economics and Management, Springer, vol. 21(1), pages 51-80, March.
    6. Ian Coxhead & Rashesh Shrestha, 2016. "Could a Resource Export Boom Reduce Workers’ Earnings? The Labour-Market Channel in Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 52(2), pages 185-208, May.
    7. Khalid Eltayeb Elfaki & Rossanto Dwi Handoyo & Kabiru Hannafi Ibrahim, 2021. "The Impact of Industrialization, Trade Openness, Financial Development, and Energy Consumption on Economic Growth in Indonesia," Economies, MDPI, vol. 9(4), pages 1-13, November.
    8. Roby Setiadi & Kardison Lumban Batu & Harry Soesanto, 2017. "Does an Environmental Marketing Strategy Influence Marketing and Financial Performance? A Study of Indonesian Exporting Firms," Tržište/Market, Faculty of Economics and Business, University of Zagreb, vol. 29(2), pages 177-192.

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