This open access book analyzes the dualism and inequality in Indonesia insofar as how it
affects micro Small & Medium enterprises. The author considers how the general direction of
policy should be to mitigate the effects of agglomeration forces leading towards concentration
of activities in developed areas and exploit the same forces by encouraging small businesses
to operate in a close proximity and enable them to enjoy the external economies. If serious
efforts to foster inclusive growth are to be made conducting these two tasks should be the
focus of social planners. The question is how? The book addresses this question by focusing on
the role of interactions between policies and institutions of which social capital is an
important part.
