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The Role of Offset in the Enduring Gestation of Indonesia’s Strategic Industries

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  • Curie Maharani
  • Ron Matthews

Abstract

The purpose of this paper is to examine the performance of Indonesia’s informal offset policy over the period 1976-2014. The paper offers four original academic perspectives: firstly, it is framed by reference to what Indonesia’s former Minister of Technology, Dr Habibie, described as the Progressive Manufacturing Plan, a novel approach in which offset was intended to play a critical supportive role in the systematic development of strategic civil-military industries; secondly, the analysis is structured into three distinctive ‘development-survival-revival’ industrialisation stages that impacted on the performance of both offset and the broader defence economy; thirdly, the study is uniquely different in the sense that the offset case studies all occurred in an era absent of a formal offset policy regime; and lastly, the study provides a wealth of rich data in a subject field well-known for its sensitivity, if not secrecy, and thus is characterised by a paucity of empirical evaluation.

Suggested Citation

  • Curie Maharani & Ron Matthews, 2023. "The Role of Offset in the Enduring Gestation of Indonesia’s Strategic Industries," Defence and Peace Economics, Taylor & Francis Journals, vol. 34(7), pages 981-1002, October.
    • Handle: RePEc:taf:defpea:v:34:y:2023:i:7:p:981-1002
    DOI: 10.1080/10242694.2022.2065423
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