Abstract
In this paper we studied how the transaction type of 'Drawings Approved' (DA) functions as a barometer of improvement degree of the industrial system in the Indonesian automotive industry. A previous study shows that "Learning-by-Reciprocating" is possible through transaction of parts in the DA transaction, which accelerates the speed of technology transfer. However, all four types of skill are needed for DA suppliers: 1) initial development skills, 2) later development skills, 3) mass production skills, and 4) improvement skills. Based on these characters of DA transaction, we analyzed the advancement level of Indonesian auto industry, using it as a indicator of improvement degree. Our findings show that the local automotive industrial system is not mature yet. However we also found that some Indonesian suppliers close to being "DA supplier" which indicates that Indonesian Industry system is in progress.
