ABSTRACT
This chapter examines the development of Small-Scale Industry (SSI) clusters in Indonesia and main factors affecting the process. Most of the clusters are located in rural areas as the bulk of SSIs in the country is also found in the rural areas. The clusters were established naturally as they are generally the traditional activities of the community whose areas and specific products have long been proceeding. The chapter deals with the identification of some of these factors in the Indonesian case, based on results of a large number of studies that have been conducted so far on the performance of the SSIs clusters in Indonesia. It discusses the internal as well as external networks of SSI clusters in Indonesia. There are a lot of clusters where small entrepreneurs, particularly those producing export items or goods of better technologies, have, to some extent, business strategies.
