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This book studies the challenges for Indonesia, once a miracle
economy, as it faces premature deindustrialisation, rising
inequality and domestic and external factors impacting its
export-oriented industrialization. Since the fall of Soeharto,
Indonesia has undergone a far-reaching systemic transition from
centralised and autocratic governance to a highly decentralised and
democratic system. Complicated by regional variations, the country
is now being called upon to respect labour rights and, amidst slow
global economic recovery, is facing increased competition from
other low-labour-cost countries, especially within the ASEAN
Economic Community. Tadjoeddin and Chowdhury posit that Indonesia
cannot recreate its past miracle based on cheap labour and
suppression of labour rights. It will need to move quickly to high
value-added activities driven by productivity growth and to develop
its domestic market.
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