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For those planning to trade with, invest in or set up in Indonesia, this report presents an analysis of its industrial base. It is broken down into three chapters. Chapter One surveys the processes of economic growth and structural change within the country. It also reviews the policy environment within which these changes took place. The second chapter gives a focused analysis of the manufacturing sector. All the key issues involved in growth and structural change are discussed in detail, including employment, productivity, ownership, location, environmental impact and trade. It explains the way in which manufacturing diversification has been achieved in recent years and identifies new trends. Following an analysis of the manufacturing sector at an aggregated level, Chapter Three goes on to provide a more specific analysis of its various branches and industries. It assesses the resource base; the recent development trends; and the constraints and prospects for each branch. All the major manufacturing sectors and many individual industries are covered in detail.