PENINGKATAN KINERJA INDUSTRI MANUFAKTUR DI INDONESIA MELALUI PENURUNAN HIGH COST ECONOMY PERIODE : 1990-2003

  • Beta Yulianita Gitaharie
  • Eugenia Mardanugraha
  • Chaikal Nuryakin
  • Su raya
Keywords: High Cost Economy, Efficiency, Stochastic frontier, Manufacturing industry

Abstract


The economic crises attacking Asian regions in the mid of 1997 have brought depressing impacts to Indonesia‘s economy. Indonesia experiences a declining share of investment— it is even the lowest amongst neighboring countries. Indonesia also ranks the first position in the issue of inefficiency which further discourages investors to invest in Indonesia. The study focuses on the issue of efficiency in the manufacturing industry whose share in the economy tends to increase during I988-2OO5 in a higher percentage than in the agriculture and services sectors. The objectives of the study are two-folds, first is to measure the score of efficiency in the manufacturing industry in order to identify which in industries are classified as efficient, moderately efficient, or less efficient. Secondly is to identify whether there is an association between input factor or output degree of protection and the score of in efficiency of a 5-digit-JSIC industry. The method employs in the study is the stochastic production frontier where efficiency is an explicit function of specifically determining factors. The study finds that wood preservative industry has the highest efficiency score, while garment and textile industry has the lowest. The study also discovers there are more industries with less and moderately efficient classification. Sources of inefficiency are from the high output tariffs, which have potential contributions to high price and less competitive products in the market. The study recommends that manufacturing industries with low scores of efficiency should improve their productivities through lower cost of production. The government has to make effort to reduce tariff for finished goods. Taxes on luxurious goods and duty charges for export oriented industries should be eliminated as an alternative to increase efficiency in the manufacturing industry. Comparative advantages, particularly for linkage industries, should be improved.

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Author Biographies

Beta Yulianita Gitaharie
Staf Pengajar departemen Ilmu Ekonomi FEUI
Eugenia Mardanugraha
Staf Pengajar departemen Ilmu Ekonomi FEUI
Chaikal Nuryakin
Staf Pengajar departemen Ilmu Ekonomi FEUI
Su raya
Staf Pengajar departemen Ilmu Ekonomi FEUI
Published
2007-07-01
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How to Cite
Gitaharie, B. Y., Mardanugraha, E., Nuryakin, C., & raya, S. (2007). PENINGKATAN KINERJA INDUSTRI MANUFAKTUR DI INDONESIA MELALUI PENURUNAN HIGH COST ECONOMY PERIODE : 1990-2003. Jurnal Ekonomi Dan Pembangunan Indonesia, 8(1), 91-121. https://doi.org/10.21002/jepi.v8i1.129
Section
Articles