Development of the Automotive Parts, Components, and Supplier Industry in Indonesia

It is hoped that the growth of the automotive industry in Indonesia will in turn stimulate the growth of producers of intermediate products for that industry. Therefor, a top-down development is envisioned in which foreign technology is transfered or imported to few large-scale local manufacturing firms, mostly susidiaries of foreign companies or their joint ventures with local firms. Technology is then diffused to a growing number of small-scale local plants and workshops which act as subcontractors. Eventually, many of these small-scale firms hopefully grow into modern and independent companies, specialized in the manufacture of specific parts and components. This report examines the growth, status and outlook for the automotive industry in Indonesia. Specific examples and data are provided, and technological needs and resources for the 1980’s identified.