ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book reviews trade and industrial policies over the years, from Indonesia's early development in the 1960s up until 2015, and provides insights for designing trade and industrial policies in the new world trade environment. It covers discussions on the position of Indonesia in East Asia including the pace of industrialisation in Indonesia compared with its peers in Southeast Asia, and assesses why Indonesia is left behind in the production networks in the region. The book provides insights on unit labour cost and exchange rates; labour regulations; and policies on local content requirement, investment, and innovation. It examines patterns of export specialisation in East and Southeast Asia. The book analyses the competitiveness of Indonesia's manufacturing sector based on unit labour costs from 2003 to 2011.
