ABSTRACT
Indonesia managed to put its economic growth back on track relatively quickly compared to other countries with similar size struck by economic crisis, such as Brazil and Russia. The Indonesian economy also came relatively unscratched from the global financial crisis. The manufacturing sector remains to have a significant share in the Indonesian economy but the ability to lift economic growth has diminished: in 1990-95, 35 per cent of GDP growth came from changes in manufacturing output while in 2003-08 that contribution was only 18. 5 per cent. Aswicahyono et al attributed the focus on exports of electronics and automotive industry as the explanation for the favorable performance of the machinery and equipment industry; electronics and automotive industries, including their parts and component industries, are the two industry groups that dominate ISIC 38. The labor-intensive industry of textile, clothing and footwear grew substantially lower after the crisis.
