Professional Documents
Culture Documents
ADVANTAGE OF
INDONESIA
GROUP 4
Ivan Budiawan 29113127
Halifah Hamzah 29113069
Andry Moch Ramdan 29113024
Anis Kemita 29113475
What is Competitiveness?
Competitiveness depends on the productivity with which a
nation uses its human, capital, and natural resources.
Productivity sets the sustainable standard of living (wages,
returns on capital, returns on natural resources) that a country
can sustain
It is not what industries a nation competes in that matters for
prosperity, but how productively it competes in those industries
Productivity in a national economy arises from a combination
of domestic and foreign firms
The productivity of local or domestic industries is
fundamental to competitiveness, not just that of export
industries
Source: The Competitive Advantage of Nations, States and Regions; Prof. Michael E. Porter; 2009
Competitive Advantage
Porters theory of competitive advantage
(Porter Michael, 1990)
The nature of the competition and the sources of
competitive advantage are very different among
industries and even among the segments of the
same industry.
Certain country can influence the obtaining of the
competitive advantage within a certain sector of
industry;
A country can offer different competitive advantages
for a company, depending if it is an origin country or
a host country;
the competitivity has a dynamic character.
Determinant of Competitiveness
Microeconomic Competitiveness
Microeconomic
Competitiveness
Quality of the
Sophistication of
National
Business
Environment
Company
Operation and
Strategy
State of Cluster
Development
Macroeconomic Competitiveness
MicroeconomicSocial
Competitiveness
Infrastructure
and Political
Institution
Macroeconomic
Policies
Natural Endownment
Source: The Competitive Advantage of Nations, States and Regions; Prof. Michael E. Porter; 2009
Factor (
input)
Conditions
Demand
Conditions
Related
and
Supporting
Industries
40,000,000.00
6.00%
35,000,000.00
5.00%
30,000,000.00
25,000,000.00
4.00%
20,000,000.00
3.00%
15,000,000.00
2.00%
10,000,000.00
1.00%
5,000,000.00
GDP Per Capita
-
0.00%
Growth
160,000.00
140,000.00
120,000.00
100,000.00
80,000.00
60,000.00
40,000.00
20,000.00
0.00
2009
Migas
19,692.30
Non-Migas 97,491.70
2010
2011
2012
2013
26,712.60 34,652.00 31,329.90 31,159.50
129,739.50 162,019.60 153,043.00 149,918.80
TPT
Electronics
Footwear Automotive
Rubber
Prawn
Cocoa
Coffee
Sumatera
Besi Baja
Makanan / Minuman
Tekstil
peralatan transportasi
Perkapalan
Nikel
Tembaga
Bauksit
Kelapa Sawit
Karet
Pertanian pangan
Pariwisata
Telematika
Batu Bara
Migas
KSN Selat Sunda
Jabodetabek Area
Alutsista
Peternakan
Perkayuan
Kakao
Perikanan
Jawa
Kalimantan
Sulawesi
Bali &
Papua & Maluku
Nusa Tenggara
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
BASIC REQUIREMENTS
Country/Economy Global Competitiveness
Index
Singapore
Malaysia
Brunei Darussalam
Thailand
Indonesia
Phillippines
Vietnam
Lao PDR
Cambodia
Myanmar
1st Pillar
2nd Pillar
Institutions Infrastructure
2
24
26
37
38
59
70
81
88
139
3
29
25
78
67
79
98
63
91
141
3rd Pillaar
Macroeconomic
Environment
4th Pillar
Health and
Primary Education
18
38
1
31
26
40
87
93
83
125
2
33
23
81
72
96
67
80
99
111
2
29
58
47
61
96
82
84
101
141
EFFICIENCY ENHANCERS
INNOVATION
2
24
26
37
38
59
70
81
88
139
2
46
55
66
64
67
95
111
116
139
1
10
42
34
50
82
74
54
55
135
1
25
10
62
103
100
56
44
27
98
2
6
56
32
60
48
93
91
65
144
7
51
71
78
75
77
102
113
97
148
34
26
131
22
15
33
36
122
92
79
17
20
56
40
37
49
98
78
86
146
9
25
59
66
33
69
76
68
91
143
Categories
Market size
Macroeconomic Environment
Innovation
Business sophistication
Goods market efficiency
Financial market development
Infrastructure
Higher education and training
Institutions
Health and primary education
Technological readiness
Labor market efficiency
Rank
15
26
33
37
50
60
61
64
67
72
75
103
Score
5.32
5.75
3.82
4.44
4.40
4.18
4.17
4.30
3.97
5.71
3.66
4.04
19%
44%
15%
Access to financing
Restrictive labor regulations
9%
6%
7%
Others
Natural Endownment
Geographical Position
Cheap Labor
Great Youth Population
Big Market Size
Creative Economy
Fast Economic Growth
Weaknesses
Corruption
Inneficient Government
Bureaucracy
Inadequate Supply of
Infrastructure
Access to Financing
Restrictive labor
Regulations
MP3EI
The Masterplan for Acceleration and Expansion of
Indonesia's Economic Development (abbreviated MP3EI)
is an ambitious plan by the Indonesian government to
accelerate the realization of becoming a developed
country of which the prosperity will be enjoyed equally
among the people.
By utilizing the MP3EI, Indonesia aims to earn its place as
one of the worlds developed countries by 2025 with
expected per capita income of USD $14,250-$15,500 and
total gross domestic product of USD $4.0-$4.5 trillion.
MP3EI
Acceleration and expansion of Indonesias economic
development is supported by Indonesia's demographic
potentials, the abundance of its natural resources, and by its
geographical advantages.
Important part of the MP3EI is the development of economic
corridors in Indonesia based on the potentials and advantages
inherent to each region throughout the country as has been
described previously in Indonesia Commodities Clustering.
The improvement of human resource and national science and
technology capabilities is one of three pillars of the
implementation strategy for MP3EI.
MP3EI
Conclusion
Indonesia Competitive Advantage in 2013-2014 increase
significantly from the previous period due to the MP3EI policy,
making Indonesia more attractive for investor.
Indonesias infrastructure improvement and increased quality
of human resources will also make better investment climate.
To survive in Asean Economic Community and AFTA in 2015,
Indonesia still have some homework to be done.
Recommendation
Indonesia must change from raw material exporter to finished
good exporter.
To increase Indonesia competitive advantages, Indonesia
should improve and promote its creative economy (UKM) ,
Science and Technology, and tourism.
Indonesia must improve its Human Resources & Technology
quality to face globalization economy.
Thank You