ABSTRACT

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INTRODUCTION
Indonesia has been among few countries in the Southeast Asia which has experienced an explosive growth of the manufacturing industry until economic and financial crisis at 1998. Years before the crisis, manufacturing industries increased in an average of more than 10% annually, and its contribution was steadily improving. The contribution from the sector in GDP increased from 12.7 to 22.3% (Tambunan, 2010). Exports promotion policy in that period has successfully improved exports of industrial products.