Value Chain Connectivity in Indonesia: The Evolution of Unbundlings

Kimura, Fukunari; Chen, Lurong

doi:10.1080/00074918.2018.1505412

Cited by 4 publications

(4 citation statements)

References 16 publications

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“…There are many possibilities that the same category of products is being exported and imported (two-way intra-industry exchange), but with different valueadded. In Indonesia, the value-added for the products is less than 20%, which is lower than China, Thailand, and Malaysia [20] due to a lack of advanced technology. Most of the export manufacturing in Indonesia is resource-based and low technology-based products.…”

Section: Resultsmentioning

confidence: 96%

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Proportion of exported non-oil and gas commodities for manufacturing industries, case study in the City of Cilegon

et al. 2021

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Export activities are important to the economic growth of the country, especially for developing countries. The city of Cilegon in Banten Province is the main city for the manufacturing industry in Indonesia, mainly for its iron and steel products. This study aims to determine the proportion of exported goods for the manufacturing industry in the City of Cilegon and make suggestions for further development. Data used are BPS publications 2016-2020, LQ is calculated to know the basis of the economic sector in the city. According to the calculation, the manufacturing industry in the City of Cilegon shares 59.70%, the highest among other regions. Commodities that dominated the export trade are footwear, plastic products, iron and steel products, while the US, China, and Japan were the countries that had the highest FOB. To escalate export performance and intensity, it is necessary to consider market and competitors’ networks, improvement of education and transport infrastructure, along with environmental and social-cultural impacts.

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Section: Resultsmentioning

confidence: 96%

“…It could lead to decreasing productivity and diminishing the amount of labour. Employment in the manufacturing sector (and other services) has accelerated poverty alleviation [20]. And unfortunately, as the fourth populous country, Indonesia contributed only 0.84% of the world exports [22].…”

Section: Resultsmentioning

confidence: 99%

Proportion of exported non-oil and gas commodities for manufacturing industries, case study in the City of Cilegon

et al. 2021

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“…that trade within industry is driven by imperfect market competition, each country will export a wide range of products and import a different range variety of the same products which has product differentiation. In this case, Kimura and Chen (2018) argue that technology is important in affecting the process of value chains in which the economies would likely gain its competitiveness.…”

Section: Indonesia and Australia Trade's Patternmentioning

confidence: 99%

Mapping Indonesia’s Competitiveness and Specialization with Its Major Trading partners

Hasanah

2020

bwp

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Seiring dengan perkembangan ekonomi global yang memberikan dampak pada prospek pertumbuhan ekonomi Indonesia, pemetaan terhadap daya saing dan spesialisasi perdagangan dengan mitra dagang utama Indonesia sangat penting untuk menentukan pola perdagangan antar negara. Studi ini berfokus untuk menggali keunggulan komparatif komoditas Indonesia dengan mitra dagang utama sehingga dapat diketahui sektor-sektor unggulan yang menjadi penyumbang pertumbuhan ekonomi. Studi ini menggunakan analisis model perdagangan yang terdiri dari model gravitasi, Richardian model, Heckscher-Ohlin model, Standard Trade model, dan New Trade model untuk menganalisis pola perdagangan Indonesia dengan mitra dagang utama.

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“… 5 This section focuses on what Kimura and Chen ( 2018 ) called the second unbundling. This involves the task-wise division of labor in the machinery industries.…”

mentioning

confidence: 99%

The weak rupiah: catching the tailwinds and avoiding the shoals

Thorbecke

2020

J. Soc. Econ. Dev.

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The Indonesian rupiah depreciated 50% between July 2011 and February 2020. Blanchard et al. (Are capital inflows expansionary or contractionary? Theory, policy implications, and some evidence. NBER Working Papers 21619, National Bureau of Economic Research, Cambridge, MA, 2015) showed that capital outflows from emerging markets can reduce output by increasing the cost of financial intermediation and can increase output by increasing net exports. Regression results indicate that Indonesian banks are exposed to depreciations, but that exports are not stimulated by depreciations. The findings also indicate that Indonesia's export price index is positively correlated with commodity prices and negatively correlated with manufactured goods prices. Exporting more manufactures would reduce Indonesia's exposure to volatile commodity prices and allow depreciations to stimulate exports. This paper considers several steps that Indonesia could take to increase its manufacturing exports.

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Value Chain Connectivity in Indonesia: The Evolution of Unbundlings

Cited by 4 publications

References 16 publications

Proportion of exported non-oil and gas commodities for manufacturing industries, case study in the City of Cilegon

Proportion of exported non-oil and gas commodities for manufacturing industries, case study in the City of Cilegon

Mapping Indonesia’s Competitiveness and Specialization with Its Major Trading partners

The weak rupiah: catching the tailwinds and avoiding the shoals

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