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Promoting small-scale and cottage industry clusters in Indonesia
01.03.1998
Small-scale and cottage industries often occur in clusters in Indonesia, and the government aims to help enterprises in clusters through its BIPIK programme of technical assistance. This article describes a survey of enterprises from six subsectoral clusters which attempted to discover how much the enterprises benefited from BIPIK's training and assistance with equipment. Only those enterprises belonging to 'dynamic' clusters appeared to have greatly benefited from the training: they have strong links with markets through buyers who are able to inform them about customer preferences. Enterprises in more 'dormant' clusters frequently sold their produce themselves, and were unaware of how to reach new markets with improved produce, hence they showed little interest in upgrading their technology.