An Industry without Industrialization: The Political Economy of The Failure of Indonesia’s Auto Industry

Authors

  • Wan-Ping Tai Cheng Shui University

DOI:

https://doi.org/10.21512/jas.v2i1.154

Keywords:

Indonesia's Political Economics, Automobile Industry, State Intervention, Government-Business Relations, Transnational Industry, Industry Globalization

Abstract

The development of auto industry needs a series of related policies and conditions, including market, technology, management, basic infrastructure, etc. Several Southeast Asian countries are hoping to develop their auto industries in order to lead the development of other industries in their countries. Having the largest auto market in Southeast Asia, Indonesia is supposed to have more favorable conditions than Thailand and Malaysia on the development of auto industry. Unlike Malaysia’s auto industry that has its own national brand, Indonesia does not have a national auto brand, nor like Thailand as the largest auto exporting country in Southeast Asia, a Japanese scholar even contends that Indonesia’s auto industry is “technology-less industrialization”. Based on the above analysis, the paper argues that the failure of Indonesia’s auto industry has to do with the structural factors in Indonesia’s political economy.  This paper therefore will, by taking the perspective of political economy, explore the following four factors over the failure of Indonesia’s auto industry: (1) inappropriate state intervention, (2) distorted government-business relations, (3) failure to join international complementarities in the auto industry, and (4) ineffective management on globalization.
Dimensions

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Author Biography

Wan-Ping Tai, Cheng Shui University

Dr. Wan-Ping Tai is currently an associate professor and director of Foreign Affairs at Cheng Shiu University, Kaohsiung Taiwan (R.O.C.). He obtained his Bachelor degree in Public Administration and Policy at the National Taipei University, and the social science of Master degree and Doctor of Philosophy in Asia Pacific Political Economy studies at the National Sun Yat-sen University.

His primary area of study includes the following but not limited to: Southeast Asian studies, Asia Pacific studies, Indonesia studies, and Taiwan’s Trade and Economics. 

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Published

2014-07-31
Abstract 1041  .
PDF downloaded 976  .