Development of Small-Scale Industries during the New Order Government in Indonesia
For my mother, my wife Maudy and our sons Bonar and Adriel
First published 2000 by Ashgate Publishing
Reissued 2018 by Routledge
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Copyright Tulus Tahi Hamonangan Tambunan 2000
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A Library of Congress record exists under LC control number: 99075449
ISBN 13: 978-1-138-70080-2 (hbk)
ISBN 13: 978-1-315-20445-1 (ebk)
ADB | Asian Development Bank |
AFTA | Asian Free Trade Area |
Ais | Assembling Industries |
AOIs | Automotive Industries |
APEC | Asia-Pacific Economic Co operation |
ASEAN | Association of Southeast Asian Nations |
BI | Bank Indonesia (Central Bank of Indonesia) |
Bulog | Badan Urusan Logistik (government logistic body) |
CBS | Central Bureau of Statistics |
CHIs | Cottage and Household Industries |
CKD | Completely Knocked Down |
CPIs | Component Industries |
DCs | Developed Countries |
Depkop and PKM | Departemen Koperasi dan Pengusaha Kecil dan Menengah (Department of Co operative and Small and Medium Entrepreneurs) |
Depnaker | Departemen Tenaga Kerja (Department of Manpower) |
Depperindag | Departemen Perindustrian dan Perdagangan (Department of Industry and Trade) |
DP | Deletion Program |
EC | European Community |
Els | Engineering Good Industries |
ELIs | Electronics Industries |
GDP | Gross Domestic Product |
GNP | Gross National Product |
GRDP | Gross Regional Domestic Product |
IMF | International Monetary Fund |
ILO | International Labor Organization |
IPB | Institu Pertanian Bogor (Bogor Institute of Agriculture) |
KIK | Kredit Usaha Kecil (Credit for Small-Scale Investment) |
KMKP | Kredit Modal Kerja Permanen (Credit for Permanent Working Capital) |
KOPINKRA | Koperasi Industri Kecil dan Kerajinan (Small-Scale Craft Industry Co operative) |
LC | Local Content () LDCs Less Developed Countries |
LEs | Large Enterprises |
LSIs | Large Scale Industries |
MCIs | Motorcycle Industries |
MEs | Medium Enterprises |
Mis | Machinery Industries |
MLSIs | Medium and Large Scale Industries |
MSIs | Medium Scale Industries |
NGO | Non Government Organization |
Pertamina | Perusahaan Tambang Minyak Negara (State Oil Company) PLN Perusahaan Listrik Negara (State Electricity Company) VAT Value Added Tax |
SAR | Strategic Alliance Relationship |
SC | Subcontracting |
SEs | Small Enterprises |
SI | Supporting Industry |
Sis | Small Industries |
SMEs | Small and Medium Enterprises |
SMIs | Small and Medium Scale Industries |
SSIs | Small-Scale Industries |
UNDP | United Nations on Industry and Development Organization UNIDO United Nations Industrial Development Organization |
UPT | Unit Pelayanan Teknis |
WTO | World Trade Organization (Technical Service Unit) |
Most materials used in this book are from a number of studies conducted between 1992 and 1998. The main parts of are based on the result of my Ph.D study on Small-Scale Industries (SSIs) in Indonesia, which was undertaken in the period 1992-1993. During that period, I really enyoyed my time at the Centre for Development Planning, Erasmus University Rotterdam (CDP-EU), and during the survey period (1992 and 1993) at the Research Institute, Christian University of Indonesia (LP-UKI) in Jakarta. The entire research project was funded by the Netherlands Foundation for the Advancement of Tropical Research (WOTRO). I owe an important debt of thanks to Prof. J.G. Waardenburg, M.Sc. (CDP-EU), and Prof. Dr. Henk Thomas (Institute of Sosial Studies in the Hague), for their guidance and support during the entire research project. I also very much appreciated the supports given by Dr. J.G. Piek., Mrs M.W.J. Cremers, M.A., and Dr. P.H.J.J. Terhal; all from the CDP-EU.
Many thanks I also owe to my friends and colleagues at the LP-UKI, especially Rudy Sitompul, Msc, the Centre for Economic Development, National Institute of Science (PEP-LIPI), in particular Dr Thee Kian Wie, and the Centre for Development Studies, Bogor Agricultural University (IPB), particularly Dr Mangara Tambunan for all their supports of all kinds. Of course, the same holds true for all local government officials and the sample producers who were willing to co operate with me during the study.
The other part of is mainly based on the result of my study on Present Status and Prospect of Supporting Industries in Indonesia in 1988, as a part of the project on Supporting Industries in Asia from Institute of Developing Economies (IDE), Tokyo. I would like to thank Mr. Toyojiro Maruya (IDE) for giving me this research opportunity. I also owe an important debt of thanks to Dr Thee Kian Wie (PEP-LIPI) who has introduced me to Mr. Toyojiro Maruya for this project.
is based on my study on Strategic Alliances of Small and Medium Enterprises in the Manufacturing Sector in Indonesia. The study was conducted during 1997-1998 in collaboration with the University of Alabamas Strategic Alliance Research Group (SARG), supported by a grant from The Asia Foundation with USAID funding, and received internal support from the Department of Management and Marketing, University of Alabama. Some part of the original draft presented in this chapter was prepared together with Prof. Dr. K. Mark Weaver, as the director of the project (SARG). During the study, I stayed several days in the University of Alabama, and I really enjoyed my time there with Prof. Weaver (and his wife and friends) and Louis Marino, Ph.D.