Policies Affecting Indonesia's Industrial Technology Development‪.‬

I. Introduction The competitive environment for Indonesia's manufacturing industries has changed a great deal in the years following the Asian economic crisis. The major factors in the global environment that have adversely affected Indonesia's competitiveness in its manufactured exports include increasing economic openness, shorter product cycles, and continuous technological improvements (World Bank 2003, p. 4). For countries like Indonesia, which are highly dependent on foreign trade and therefore deeply integrated in the global economy, it is vital to monitor regularly the productivity and international competitiveness of their industries, which are of great importance to their economies.