National Competitiveness of Indonesian Warship Industry: A Qualitative Study by Using Porter Diamond Model

Abstract

The objective of this research is to find out the competitiveness of the Indonesian warship industry in the warship industry competition in ASEAN and East Asia. This research is a participant observation ethnographic research, the results of the research shows that the competitive advantage of the Indonesian warship industry is still not on the top level and left behind by the other countries. Warships produced by the Indonesian warship industry are almost entirely for local consumption, even though they are using by the Indonesian Navy not because their quality meets the qualifications set by warship user, but because of government’s policy which obliges users to prioritize the use of the national produced warships. The outcomes should be used as input for the government and related stakeholders in determining policies to increase the competitive advantage of the warship industry in Indonesia. Based on the research, the Porter Diamond Model for the Indonesian Warship Industry can be proposed. Several recommendations were given to the government and related stakeholders to increase the competitive advantage of the Indonesian warship industry.