Harnessing Opportunities: A Policy Analysis of a Developing Country A single case study on Indonesian policymakers

Sammanfattning: This thesis examines how developing countries, with a specific focus on Indonesia, respond to the reconfiguration of Global Value Chains (GVCs). Previous research has overlooked the policy perspectives in this context. Using a qualitative approach and a case study design, the thesis explores the perceptions of Indonesian policymakers regarding deglobalization and decoupling narratives, as well as strategic objectives set by the Indonesian government. With the use of an abductive approach, a conceptual model was established through a theoretical framework focusing on Deglobalization, Porter's diamond on competitive advantage and lastly, policy implementations in regards to GVCs. This conceptual model was then used to further analyze data and findings that was carried out with Indonesian policymakers. The findings reveal that Indonesian policymakers view deglobalization as an opportunity rather than a threat. They prioritize a differentiated strategy beyond cheap labor and productivity, capitalizing on Indonesia’s strength in critical minerals. They focus on developing their sustainable competitive advantage in the EV value chain. These objectives aligned with Indonesia’s broader economic goal of economic upgrading and becoming a developed country by 2045. However, the findings also reveal that Indonesia still needs to develop other dimensions of the Porter’s Diamond model to enhance its competitiveness, rather than solely relying on one factor conditions in its critical minerals. The research highlights that developing countries like Indonesia are not significantly affected by GVC reconfiguration and instead see it as a chance to leverage their natural resources for national development.