ABSTRACT
Several factors may account for the rapid growth of Indonesia’s small-scale industries. Subcontracting has been particularly important in the industrial development of Japan and some of the Newly Industrialised Economies and, therefore, may prove to be important for Third World economies such as Indonesia. Since great variations exist between different small-scale industries, explanations should be considered in the context of specific locations and case studies. Various government officials, trade associations, suppliers, distributors, and important local identities within the community were interviewed to cross-check information and gain background information on specific industries. Local community identities interviewed in each of the three areas included, among others, the chief of the neighbourhood subgroup and neighbourhood group. Trade associations were mainly concerned with large enterprises. The chapter also presents an overview of the key concepts discussed in this book.
