ABSTRACT

A series of policy reforms beginning in the early 1980s, and accelerated in 1986, have been spectacularly successful in generating a cluster of large private sector conglomerates. But these reforms have yielded much less benefits at the small business level. Market-driven business linkages could go a long way towards reducing problems of low technology and capital shortage, problems most often cited by small business people themselves. A great deal of public-private debate on how best to support small business development is now occurring in Indonesia through workshops, conferences, and the press. Many of the research and academic groups best able to speak clearly and with authority for small businesses are not engaged with policy makers, making it difficult to forge an effective pro-reform coalition pressing for better policy and programs. Facilitating emergence of a broad and effective coalition of interests supporting small business development requires that we work closely with a range of private sector/non-governmental organisation actors.