Abstract
Under President Jokowi, small and medium firms in manufacturing have been emphasized for their role in enhancing equality and quality of life, as detailed in the Nawacita economic platform. The administration’s approach, rooted in Law no. 27/2007, promotes broad-based economic growth with significant focus on intersectoral relationships, recognizing small and medium enterprises as crucial to the manufacturing “value chain.” Plans involve strengthening the value chain through diversification and vertical integration. Infrastructure, notably the trans-Java toll road, connects these firms to urban markets. Amidst global disruptions like COVID-19, the focus has been on creating an enabling environment for businesses, with programs like MEKAR and KUR assisting them. The 2022 PEN budget heavily favors small firms. The paper revisits Kuncoro’s 2014 research, exploring the relationship between small-medium and large firms in Indonesia using 2014–2019 data.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Amiti M, Konings J (2007) Trade liberalization, intermediate inputs and productivity: evidence from Indonesia. Am Econ Rev 97(5):1161–1168
Aswicahyono HH, Hill H, Naryoko D (2010) Industrialization after a deep economic crisis: Indonesia. J Dev Stud 46(6):1084–1108
Crespi G, Criscuolo C, Haskel J (2008) Productivity, exporting and the learning by exporting hypothesis: direct evidence from UK firms. Can J Econ 41(2):619–637
Evans D (1987) The relationship between firm growth, size, and age: estimates for 100 manufacturing industries. J Ind Econ 35(4):567–581
Fazzari S, Hubbard G, Petersen B (1988) Financing constraints and corporate investment. Brook Pap Econ Act 1:141–208
Greenstone M, Hornbeck R, Moretti E (2010) Identifying agglomeration spillovers: evidence of winners and losers from large plant openings. J Polit Econ 118(3):536–598
Harris JR, Schiantarelli F, Siregar MG (1994) The effects of financial liberalization on the capital structure and investment decision of Indonesian manufacturing establishments. World Bank Econ Rev 8(1):17–47
International Labor Organization (ILO) (2019) Financing small businesses in Indonesia: challenges and opportunities
Jacobs J (1970) The economy of cities. Random House, New York
Kokko A (1994) Technology, market characteristics, and spillovers. J Dev Econ 43(2):279–293
Koyagiolo KF (2016) Small business survivability beyond five years. Walden Books, Ann Arbor
Kuncoro A (2004) Bribery in Indonesia: some evidence from micro-level data. Bull Indones Econ Stud 40(3):329–354
Kuncoro A (2014) Small and large firm gaps in the era of globalization. Unpublished research paper, ERIA
Kuncoro A (2018a) Trends in the manufacturing sector under the Jokowi presidency: the legacy of past administrations. J Southeast Asian Econ 35(3):402–444
Kuncoro A (2018b) Development of export in Indonesian manufacturing: a look at micro data. In: Hill H, Ing LY, Mulyani S (eds) Indonesian economy. Routledge
Kuncoro A (2021) The role of Indonesian corporations in supporting synergy with SMSE. Paper presented at BRI (People’s Bank of Indonesia) Institute
Sato Y (2011) Local firms’ capability in captive value chains: evidence from the Indonesian motorcycle industry. In: Kawakami M (ed) The dynamic of local learning in global value chain (IDE). Jetro
Singh I, Strauss J, Squire L (1986) Agricultural household models, extensions, applications and policy. John Hopkins University Press, Baltimore
Takii S (2005) Productivity spillover and characteristics of multinational plants in Indonesian manufacturing 1990-1995. J Dev Econ 76:521–542
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this chapter
Cite this chapter
Kuncoro, A. (2024). Small- and Medium-Size Linkages with Large Firms: Revisiting Studies on Indonesian Manufacturing. In: Resosudarmo, B.P., Mansury, Y. (eds) The Indonesian Economy and the Surrounding Regions in the 21st Century. New Frontiers in Regional Science: Asian Perspectives, vol 76. Springer, Singapore. https://doi.org/10.1007/978-981-97-0122-3_4
Download citation
DOI: https://doi.org/10.1007/978-981-97-0122-3_4
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-97-0121-6
Online ISBN: 978-981-97-0122-3
eBook Packages: Economics and FinanceEconomics and Finance (R0)