Quarterly Report - Kadin Indonesia

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Source: ILO (2005)51 Kadin Indonesia – www.kadin-Quarterly Report - January 2006indonesia.or.id
RecommendationThe above discussion ends with the following recommendations for policy makers andprivate sector:1) The government should deliver rapid economic growth, which in turn is based on astable and predictable macro-economic environment accompanied with stable andpredictable policy environment, openness to international economy, efficientlyfunctioning financial system and market mechanism for inputs and output, an effectivelegal system, improved physical infrastructure and public utilities and services, andhighly developed in human resource. In the well-known “diamond” model fromPorter, it is stated that undistorted output and inputs markets accompanied with goodquality in human resource and infrastructure simultaneously determine directly thebusiness environment and the country’s competitiveness. As an illustration, withrespect to overall quality of infrastructure, based on The Global CompetitivenessReport 2004-2005, Indonesia is in the 44 th place (from 104 countries) with the score of4.2; while Denmark is in the top position with the highest score of 6.8. Moreover,undistorted market with no restrictions/barriers to all does not only force enterprises toincrease their efficiency and competitiveness and thus encourage them to invest andco-operate among them as well as between them and R&D institutions and universitiesin R&D activities, but it will also eliminate uncertainty in doing business and thusattract FDI. Moreover, when domestic market is working well, a small governmentintervention will yield better results than a big government intervention when marketsignals do not well function. So, this is the most important contribution thegovernment can make to support capacity building or competitiveness improvement indomestic T&C companies.2) Domestic T&C companies should modernize their machineries and production tools,and, if necessary, diversify their products towards markets with greater potentials.They should also establish or strengthen their global distribution networks. In thisQuarterly Report - January 2006indonesia.or.id52 Kadin Indonesia – www.kadin-
Page 1 and 2: Topic Report4 th Quarterly ReportIs
Page 3 and 4: have also made it a footloose indus
Page 5 and 6: Although the global value chains in
Page 8 and 9: Table 6: Approved Domestic Direct I
Page 10 and 11: Figure 2. Trend of development of F
Page 12 and 13: Source: ILO (2005).Figure 5. Ten co
Page 14 and 15: export ranges from 4.8% to 6% durin
Page 16 and 17: Table 11. Clothing exporters of sel
Page 18 and 19: Source: see Figure 1Table 12. Expor
Page 20 and 21: 19 Kadin Indonesia - www.kadin-Quar
Page 22 and 23: International trade in T&C has been
Page 24 and 25: Table 14. Clothing imports to the U
Page 26 and 27: Table 16. Textile imports of EU (15
Page 28 and 29: Source: WTO (2004a).Quarterly Repor
Page 30 and 31: enterprises is about 150,000 meter
Page 32 and 33: Indonesia (in the latter case mainl
Page 34 and 35: Source: Shafaeddin (2002) (data USI
Page 36 and 37: its international market share, the
Page 38 and 39: Source: ITC (UNCTAD/WTO37 Kadin Ind
Page 40 and 41: 1) Stars (upper right quadrant): sp
Page 42 and 43: 4) Traditional Products (lower righ
Page 44 and 45: Wood productsTextilesIT & consumer
Page 46 and 47: Source: Nordås1 (2004),Based on IT
Page 48 and 49: A very important question now regar
Page 50 and 51: Rest of the worldOther North Africa
Page 54 and 55: case, the Indonesian Association of
Page 56 and 57: Appendix: The Theoretical Cluster D
Page 58 and 59: Astono, Banu dan Dwi Bayu R. (2005)

Quarterly Report - Kadin Indonesia

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