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All Journal Journal Publicuho Journal of Poltica Governo
Sugeng Bahagijo
Universitas Dr Soetomo
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Environmental Science Languange, Linguistic, Communication & Media Social Sciences

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Evaluating Industrial Policy Implementation In Indonesia: A Case Study of Law No. 3/2014 on Industry Sugeng Bahagijo; Amirul Mustofa
Journal of Politica Governo Vol. 2 No. 4 (2025): Politica Governo - August
Publisher : Pt. Anagata Sembagi Education

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62872/8d78hy85

Abstract

This study aims to critically analyze and evaluate the implementation of Indonesia’s Law No. 3 of 2014 on Industry as a strategic policy instrument for national industrial development. Utilizing a qualitative research design with a document analysis method, the study assesses the law's effectiveness, efficiency, relevance, and sustainability in addressing pressing structural challenges particularly early deindustrialization, declining manufacturing competitiveness, and the persistently low added value of domestic industrial output. Although Law No. 3 of 2014 provides a robust normative and legal framework, its practical implementation has encountered significant constraints. These include weak inter-agency coordination, limited institutional capacity at the subnational level, insufficient policy alignment across sectors, and minimal integration of small and medium-sized enterprises (SMEs) into the national industrial ecosystem. Using Dunn’s (2003) public policy evaluation framework, the study finds that the law has yet to foster an inclusive, adaptive, and innovation-driven industrial environment. Moreover, policy outcomes remain fragmented and inconsistent with long-term industrialization goals. To address these gaps, the study recommends enhancing policy implementation through stronger cross-sectoral integration, capacity-building for regional industrial governance, increased investment in research and development, and the protection of strategic industries vital to national resilience. These efforts are essential to lift Indonesia out of the deindustrialization trap and position it toward achieving sustainable, high-value industrial transformation.           
RECONFIGURING INNOVATION PATHWAYS IN THE PUBLIC SECTOR: A DYNAMIC CAPABILITIES ANALYSIS OF LPDP AND PT KAI IN INDONESIA Sugeng Bahagijo; Amirul Mustofa; Priyanto Priyanto
Journal Publicuho Vol. 8 No. 3 (2025): August - October - Journal Publicuho
Publisher : Halu Oleo University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35817/publicuho.v8i3.814

Abstract

This study investigates how dynamic capabilities are developed and operationalised within two Indonesian public sector institutions: the Indonesia Endowment Fund for Education (LPDP) and the state-owned railway company, PT Kereta Api Indonesia (PT KAI). Using a qualitative comparative case study approach and drawing on Kattel’s (2022) public sector dynamic capabilities framework, sense-making, connecting, and shaping the research analyses institutional reports and documents from 2016 to 2023. LPDP exemplifies a design-led innovation model, characterised by long-term policy alignment, digital transformation, and inclusive scholarship and research funding mechanisms. In contrast, PT KAI demonstrates a crisis-driven transformation pathway involving operational restructuring, digital service reinvention, and physical infrastructure modernisation. The findings reveal that dynamic capabilities are highly context-sensitive and shaped by institutional form, leadership agency, and sectoral demands. This article contributes to the emerging literature on public sector innovation in developing countries by showing how different pathways of reform can produce adaptive, learning-oriented, and value-generating public institutions.
Co-Authors Amirul Mustofa Priyanto