Potensi dan Prospek Industri Kecil

The manufacturing sector has retained its importance in the Indonesian Economy. Since 1990 it has surpassed the agricultural sector as the main contributor to the Gross Domestic Product (GDP). Article analyses strenght and weaknesses of the small-scale manufacturing industries (SSIs). By ussing the economic contribution approach and the framework proposed by Pyke, based on 2003 data provided by BPS statistics Indonesiathe study investigates the SSIs performance in relation to their economic contribution, the collective efficiency, constant innovation and economic ofscope strategy. It is conluded that Pyke's framework was not apply since SSIs facing lack of social infrastructures and knowledge, and mostly less educated compared with the larger one. The empirical evidence also shows that in terms of value added and labor absorption, its share less than 1 % and 16 % respectively of the whole of industrialsectors

Age, Export Orientation and Technical Efficiency: Evidence From Garment Firms in DKI Jakarta

In this paper, the technical efficiency of garment firms in DKI Jakarta is estimated by incorporating a model for the technical inefficiency effects in the stochastic frontier production function. The aims are to estimate both the technical efficiency of the firms and the sources of technical inefficiency within the context of Indonesia’s macro-economic policy. The empirical results point a number of noteworthy features of the economic performance of firms in relation with some specific characteristics. It is found in the study that the Cobb douglas functional form was not adequate, but the sources of technical inefficiency were found and technical change was present.&nbsp

Fiscal Effectiveness Under Regional Economic Integration: Indonesian Agricultural Performance Case

This paper investigates the effectiveness of fiscal policy in boosting agricultural sector performance and seeks the most effective policy in the presence of regional economic integration. It predicts the effectiveness of fiscal policy on the agricultural sector performance in four periods; the new order regime, the economic crisis, and pre and post China Free Trade Area (CAFTA). It also predicts the impact of fiscal policy on agricultural sector performance when CAFTA is fully implemented. It finds that fiscal policy is more effective in the optimum allocation of expenditures. It also finds that the agricultural sector can grow faster when the portion of capital expenditure increases