26 June 2010

Kripik Tempe--Home Industry

Toured a few home industries yesterday--tempe, fruit chips and ceramics. I've been told it is very easy to get a license to open a business in Indonesia. If I understand correctly, rather than massive factories using machinery/economies of scale to bring down the cost of production and therefore the price, with home industries there are tons of individual producers/suppliers in the market and therefore high competition, low prices and higher employment.

Tempe is a common product in home industry.  

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