Abstract

Purpose : This study analyzes the international competitiveness of Korean products in the Indonesian automobile market.
 Research design, data and methodology : The export of automotive products was extracted in terms of HS 4 and HS 6 units. The Trade Specialization Index (TSI) was calculated for Korea and Indonesia, and a Market Comparative Advantage (MCA) index was calculated for Korea, Japan, and Thailand in the Indonesian automobile market. Export statistics were extracted from the International Trade Centre Trade Map.
 Results : The TSI shows that Korean companies have strong competitiveness in almost all items, compared to Indonesian companies. But according to the MCA index, Korea has no long-term, strong comparative advantage. In contrast, Japan and Thailand have many long-term, strong comparative advantages, especially in the parts/equipment sectors. There, they have an absolute advantage that supports the assembly and production of Japanese automobile brands.
 Conclusions : The Korean automobile industry should find a chance to turn the tide. Korea should increase investment in production facilities in Indonesia, and should seek an opportunity in the conversion to electric vehicles. Also, Korean companies must watch carefully for changes in circumstances due to Indonesian government policy and FTAs.

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