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The premise: Buy up lots of small companies in a fragmented business--such as used cars, funeral homes, office products, food distribution and medical diagnostics--then purchase raw materials in bulk to cut costs.
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This is an especially helpful feature for cash poor artisan businesses, many of whom operate on very slim margins and would not be able to fill orders without ready cash to purchase raw materials.
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Overseas money is invested overseas in new retail stores, the purchase of raw materials, the buying of manufacturing equipment, pre-paying for components etc.
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Fifty-year-old Basuki Rachmad, a furniture maker from Banjarmasin, complains he cannot get a permit to obtain his raw materials since a legal license to buy wood is only granted to businesses that purchase over 100 cubic meters a month, three times his requirement.
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