ABSTRACT
This chapter examines the experience of the small family businesses and their workers in order to investigate and demonstrate the importance of intra-firm relationships in the performance of Jakarta’s small-scale enterprises. It explores the intra-firm relationships in both small family businesses and large enterprises through their different use of factor inputs of land, labour and capital in the production process —a phenomenon which creates separate product and spatial markets. The combination of factor inputs differs between large firms and family businesses. Moreover, the nature of inputs themselves varies between small enterprises and larger firms. The location decisions that brought large firms to the Pulo Gadung Industrial Estate were different from those of traditional small enterprises in the Klender cluster of small-scale furniture producers. A significant number of large firms, however, continue to employ workers on a minimum wage system, with the more productivity conscious firms using a minimum wage together with an incentive scheme.
