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Indonesia in Global Manufacturing Value Chains: Policy Ambivalence and Arrested Growth

Prema-chandra Athukorala & Arianto Patunru

Asian Economic Papers2026https://doi.org/10.1162/asep.a.961article
AJG 1ABDC B
Weight
0.37

Abstract

This paper explores Indonesia's experience in leveraging opportunities presented by global manufacturing value chains (GMVCs), with a comparative focus on Southeast Asia. It is motivated by growing concerns in recent policy discussions regarding the country's underutilized growth potential, which could be unlocked through more effective integration into GMVCs. Indonesia initially had promising prospects for export-oriented industrialization by engaging in GMVCs. However, its industrialization trajectory over subsequent years has not lived up to expectations. Strong evidence indicates that Indonesia's deep-rooted policy ambivalence has hindered its full participation in global production networks. The findings highlight the need for a proactive investment promotion strategy to attract multinational enterprises involved in GMVCs.

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https://doi.org/https://doi.org/10.1162/asep.a.961

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@article{prema-chandra2026,
  title        = {{Indonesia in Global Manufacturing Value Chains: Policy Ambivalence and Arrested Growth}},
  author       = {Prema-chandra Athukorala & Arianto Patunru},
  journal      = {Asian Economic Papers},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1162/asep.a.961},
}

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Indonesia in Global Manufacturing Value Chains: Policy Ambivalence and Arrested Growth

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.