A study of the competitiveness of the local automotive parts industry in Indonesia

Abstract

In this paper we studied how the system of ‘Drawings Approved’ (DA) functions as a barometer of competitiveness in the Indonesian automotive industry. Companies using the system of DA demonstrate four specific skills that help them gain trust from car manufacturers. Many local suppliers in Indonesia are ‘vendors of drawings supplied’ (DS), so customers are able to replace them with others because the drawings are unprotected and imply no obligation to collaborate. Local automobile parts suppliers in Indonesia need to improve client approval functions urgently in order to survive in the industry.