Indonesia in the global apparel value chain: Economic and social development experience

This study attempts to clarify the impact of implementing global production network (GPN) in the Indonesian apparel sector on the economic and social realm in the form of economic and social upgrading. Furthermore, the article also analyzes whether the economic upgrading will affect its social performance by carefully selecting indicators to examine changes in the economic and social conditions in the Indonesian apparel sector during 2000-2014. This study applies a parsimonious measurement approach using four dimensions of growth to precisely determine the sector’s economic and social characteristics. We found that the Indonesian apparel industry has undergone low-road decline, which means that the industry suffers from downgrading in both its economic and social aspects. This study attempts to see both economic and social realms in Indonesia’s apparel sector to determine whether either or both have undergone upgrading or downgrading. Also, tries to find out under what conditions and how the industry can achieve both economic and social upgrading.