Indonesian people have known musical instruments since classical times (Hindu-Buddhist), can be traced to artifacts that we can find today.

Shiva Temple of Prambanan (9th-century Hindu temple)
and Borobudur (8th-century Mahayana Buddhist temple)
have hundreds of relief depicting development of Indonesian music.

So, it is not surprising to say that Indonesian people have long been guitarists and have been able to create their own guitar.
For the industry, China, South Korea and Indonesia are huge places for guitar building, make a higher number of guitars, but are not known for their own brands.

Indonesia is popular among instruments manufacturers, because the cost of labor is not as much as Korea or China.
While the labor costs less, Indonesian still put more attention to detail and better quality parts, so it’s safe to say that Indonesian-made guitars are better than Chinese-made guitars.
Indonesian have a way with handicraft, especially if you want to search for artisan guitars.
One of the place is Guitar Village, a haven for stringed-instruments with several countries of exported destinations.

Also, there many local guitar brands that offering exceptional quality, although less well known by the world.
This proves that local guitars can compete with international guitar brands.