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"After outlining the shift in interpretation of the concept and objectives of rural development since the mid-1960s, the main consequences of the new role assigned to formal credit in the desired rural transformation process are explored. Against this background, some general characteristics of rural credit provision in Indonesia are summarized. Subsequently, the study deals with the present-day role of formal rural credit in the area, the actual use of credit by the households in the various agro-physical zones, and the appraised needs with recommendations for a policy of rural credit provision which is better attuned to the socio-economic circumstances as present in the geographical setting of this part of central Java, Indonesia."

"In the last two decades, the small scale industrial sector, due to various reasons, has increasingly received attention from Indonesian policy makers. In the research area, rural small scale industrial activities play an important role, yet in a varying way. Production factors like labor and capital as well as the degree of localism are used to illustrate the differences in character. Attention is also paid to the linkages of those small scale industrial units and sectors. Based on the main characteristics and the function of those rural small scale industrial activities, a distinction is made between basic and non-basic activities. A short description is given of the most important government programs in the sphere of SSI development. It is concluded that policy makers have given insufficient attention to the differences within the sector. As a result, most of the small scale industrial units are deprived of the programmes which are specifically designed for them."

"ABSTRACTAdministrative and territorial units Indonesian villages and hamlets have, for the last decade or so increasingly come within the sphere of interest of both national and regional planners for the simple reason that a balanced and effective development strategy has to account for the rural hinterland where the majority of approximately 130 million people live. There seems to be a growing consciousness among both planners and other less professional policy makers that sustained economic development of the country would only be possible if villages and hamlets are successful in skillfully exploiting their resources and potencies, and thus becoming growth centers themselves. Therefore, in order that hamlets and villages be enabled to deploy and accelerate the pace of development appropriate measures will continue to be taken by the government. Its interference, having been a long accepted principle, is not the problem. However, where the shoe pinges is in the relative ignorance and lack of data about a good many aspects of rural life, in national and regional level planning boards, encompassing specific patterns of interacting social categories, e.g. institutions and more formal groupings as associations or corporate organizations. There is, moreover a lack of knowledge"

"There is a growing concern on government perception that involving people in development is regarded important to deliver the success. This can be identified from participative programs and projects carried out, so far, by the government...."