Big firms too dominant in Indonesia, World Bank says


Yaurohmi Fauzanah, an employee of Santishop Manufacture Indonesia UKM, makes a hazmat suit on March 28, 2021, in Bantul. - Photo: The Jakarta Post file

JAKARTA: Indonesia has a bigger revenue gap between small and big firms than other emerging markets, such as India, Mexico, the Philippines and Turkey, according to a World Bank report, with repercussions for the domestic economy.

Furthermore, those large companies failed to translate their revenue into as much employment as in other countries and were less efficient in allocating capital resources, the global financial institution noted, citing the manufacturing sector in Indonesia as a case in point, where the top 5 percent of firms accounted for 90 percent of revenue.

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