ABSTRACT
Inter-firm linkages within the small-scale garment and wood furniture enterprises of Jakarta have been weak. This chapter examines the prevalence and significance of inter-firm relationships for the performance of Jakarta’s small-scale garment and wood furniture enterprises. Different types of horizontal linkages are then investigated in detail by discussing their prevalence in Jakarta’s garment and wood furniture industries. Vertical linkages in Jakarta’s garment and wood furniture industries are studied initially by examining their marketing channels. Jakarta’s small-scale garment and wood furniture manufacturers sell their goods through a diverse range of market channels. The creation of the government’s PIK cluster and the Sukabumi Udik and the evolution of the Klender centres have influenced the marketing channels for both the wood furniture and garment industries. In Klender, subcontracting in the wood furniture industry was radically different. Wood suppliers had very few linkages to small furniture manufacturers.
