| dc.description.abstract | For the past two decades, the Indonesian economy has experienced significant
growth and development, including major changes in its corporate structure.
Many Indonesian big businesses have transformed their integration with the
global economy are moving from a focus on the domestic market, to become large
business groups seeking international linkages through trade and investment
beyond the Indonesian market. International economic activity is not something
new for Indonesian businesses, which have been exporting and receiving foreign
direct investment (FDI) for many decades. However, a recent qualitative change
has occurred as these businesses have become integrated into complex regional
value chains and have emerged as leaders (rather than just followers) of regional
economic integration. The transformation carried out by Indonesian businesses
is part of an internationalisation strategy that has benefited from their business
networks across Southeast Asia.
Internationalisation should not be viewed solely as the result of corporate strategies,
however. The international activities of Indonesian business groups have in large
part been driven by the development of regional economic governance mechanisms,
something which became a major phenomenon for economic architecture in the
Asia-Pacific region during the post-war era. Regional economic cooperation has
played an important role in smoothing the process, and establishing favourable
regulatory conditions, for the international operations of Indonesian businesses.
In particular, two recent examples of regional economic cooperation have directly
linked to the international expansion of Indonesian business groups: the ASEAN
Economic Community (AEC) initiative, and the Regional Comprehensive Economic
Partnership (RCEP) trade agreement. | en_US |
