Organizing the Indonesian clothing industry in the global economy: the role of business networks

In a relatively short period of time, Indonesia has become a significant ce ntre of clothing production within the global economy. Its overall growth c an be explained primarily by the intersection between two sets of political -economic processes: those operating at the global level of the industry in general and those specific to Indonesia itself. Within these general proce sses, we explore the particular organizational mechanisms through which thi s growth has occurred. Detailed field evidence shows how the Indonesian clo thing industry is deeply embedded in production networks which connect dome stic producers with international networks of production and distribution, notably those organized by Korean, Taiwanese, US, and European firms. Altho ugh such networks are generally consistent with Gereffi's concept of the bu yer-driven global commodity chain, we show that the precise shape and the d river of the company-specific production networks in Indonesia are highly d ependent on the specific market being served. Finally, brief attention is g iven to the potential impact of the current East Asian economic crisis on I ndonesian clothing firms.