The Role of SMIEs in Indonesia’s Industrialization

Latif Adam

Economics and Finance in Indonesia, 2009, vol. 57, 159-180

Abstract: This paper examines the ability of SMIEs (small and medium industrial enterprises) to maintain their important role in the rapid process of Indonesia’s industrialization in conditions where various government economic policies tended to favor their larger counterparts (large industrial enterprises/LIEs) and discriminate against them. It highlights the significance of business cooperation in enabling SMIEs to maintain their role (particularly in creating employment, generating income, and contributing significantly to increasing Indonesia’s industrial exports) by facilitating them to overcome the problem of limited technology, market narrowness, capital constraints, and informational restraints. This suggests that the government should pay more attention to the creation of a competitive business environment to provide incentives for SMIEs to develop business cooperation.

Keywords: Small and Medium Industrial Enterprise; business cooperation; growth; industrialization; Indonesia (search for similar items in EconPapers)
JEL-codes: M10 O14 O43 (search for similar items in EconPapers)
Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:lpe:efijnl:200908

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