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Tulus Tahi Hamonangan Tambunan - Development of Small-scale Industries During the New Order Government in Indonesia

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This title was first published in 2000: As in many other LDCs, in Indonesia small-scale industries (SSIs) are important, particularly with respect to the creation of employment opportunities. SSIs are expected to absorb many millions of workers who have been displaced by current economic crisis. This work seeks to explain the pattern of development of SSIs in Indonesia within a broader theoretical framework. It also deals with a number of SSI development-related aspects that in Indonesia so far have never or rarely been studied, such as the formation of strategic alliance, cluster development, and application of theories of flexible specialization to the LDCs. The book also tries to examine empirically the effects of the current economic crisis and to assess theoretically the likely impact of the full implementation of the agreed IMF reform package on SSI development in the country. Main problems faced by small producers and the government policy environment are highlighted through several detailed examples.

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Development of Small-Scale Industries during the New Order Government in - photo 1
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
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
711 ThirdAvenue, New York, NY 10017, USA
Routledge is an imprint of the Taylor & Francis Group, an informa business
Copyright Tulus Tahi Hamonangan Tambunan 2000
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.
Notice:
Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.
Publishers Note
The publisher has gone to great lengths to ensure the quality of this reprint but points out that some imperfections in the original copies may be apparent.
Disclaimer
The publisher has made every effort to trace copyright holders and welcomes correspondence from those they have been unable to contact.
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)
Contents
Guide
ADBAsian Development Bank
AFTAAsian Free Trade Area
AisAssembling Industries
AOIsAutomotive Industries
APECAsia-Pacific Economic Co operation
ASEANAssociation of Southeast Asian Nations
BIBank Indonesia (Central Bank of Indonesia)
BulogBadan Urusan Logistik (government logistic body)
CBSCentral Bureau of Statistics
CHIsCottage and Household Industries
CKDCompletely Knocked Down
CPIsComponent Industries
DCsDeveloped Countries
Depkop and PKMDepartemen Koperasi dan Pengusaha Kecil dan Menengah (Department of Co operative and Small and Medium Entrepreneurs)
DepnakerDepartemen Tenaga Kerja (Department of Manpower)
DepperindagDepartemen Perindustrian dan Perdagangan (Department of Industry and Trade)
DPDeletion Program
ECEuropean Community
ElsEngineering Good Industries
ELIsElectronics Industries
GDPGross Domestic Product
GNPGross National Product
GRDPGross Regional Domestic Product
IMFInternational Monetary Fund
ILOInternational Labor Organization
IPBInstitu Pertanian Bogor (Bogor Institute of Agriculture)
KIKKredit Usaha Kecil (Credit for Small-Scale Investment)
KMKPKredit Modal Kerja Permanen (Credit for Permanent Working Capital)
KOPINKRAKoperasi Industri Kecil dan Kerajinan (Small-Scale Craft Industry Co operative)
LCLocal Content () LDCs Less Developed Countries
LEsLarge Enterprises
LSIsLarge Scale Industries
MCIsMotorcycle Industries
MEsMedium Enterprises
MisMachinery Industries
MLSIsMedium and Large Scale Industries
MSIsMedium Scale Industries
NGONon Government Organization
PertaminaPerusahaan Tambang Minyak Negara (State Oil Company) PLN Perusahaan Listrik Negara (State Electricity Company) VAT Value Added Tax
SARStrategic Alliance Relationship
SCSubcontracting
SEsSmall Enterprises
SISupporting Industry
SisSmall Industries
SMEsSmall and Medium Enterprises
SMIsSmall and Medium Scale Industries
SSIsSmall-Scale Industries
UNDPUnited Nations on Industry and Development Organization UNIDO United Nations Industrial Development Organization
UPTUnit Pelayanan Teknis
WTOWorld 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.
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