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CLUSTERING OF SMALL AGRO-PROCESSING FIRMS IN INDONESIA AgEcon
Burger, Kees; Kameo, Daniel; Sandee, Henry.
Small-scale industries in Indonesia provide more than 65% of total manufacturing employment. Sixty-three percent of small-scale firm employment is in firms that are clustered. A cluster is defined statistically in Indonesia as at least 20 firms in a village. For some agro-processing industries, such as bamboo plaiting, clustering does not involve interaction among firms; for others, notably the furniture industry, clustering firms make joint marketing efforts, subcontract each other, and share large orders. This article uses two recent case studies in the agro-processing sector – the furniture and the palm sugar industries – in Central Java. We argue that the target market of the industry (local or international) influences the nature of the contracts...
Tipo: Journal Article Palavras-chave: Agribusiness; Industrial Organization.
Ano: 1999 URL: http://purl.umn.edu/34229
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