SME clusters in Indonesia: an analysis of growth dynamics and employment conditions

Small and medium-scale (SME) clusters in Indonesia are important economic enterprises in Indonesia. For the purpose of this study an SME cluster is defined as a sectoral grouping of mainly micro and small-scale firms.

The majority of clusters in Indonesia can be typified as dormant clusters located in rural areas. Such clusters consist mainly of micro enterprises that are characterized by the use of traditional technology. In such clusters, working conditions do not differ between household enterprises. Workers remain on the job for a long time. Many of them take over the establishments from their parents.