Track: Business Management

Abstract

The growth of automotive industry in Indonesia within five years is developed rapidly, especially after Indonesian government launched the Low Cost Green Car (LCGC) policy. Along with the growth of automotive industry, the automotive component industry in Indonesia is also grow. Until 2015, Indonesia become the second larger country in ASEAN after Thailand as an automotive and automotive component industry. Currently, Japan is the biggest investor for automotive component industry in Indonesia. From cost consideration, based on top 4 attractive country in ASEAN, Indonesia is the second country after Vietnam which have low production cost. However, from the quality consideration, Indonesia’s automotive component product is in the lowest rank after Thailand, Singapore, and Malaysia. To win the competition with other countries in ASEAN, Indonesia need to improve the operational performance of its products. Based on previous research, it is found that knowledge management enabler become the important factor to increase the performance. According to that, the aim of this article is to get an overview about the importance of knowledge management enabler in operational performance in Indonesia’s automotive component industry.