...COUNTRY RISK ANALYSIS INDONESIA D Dr.H. Susilo Bambang Yudhoyono President (RI) Short facts : Short facts Official name Capital city Government type Currency Population Official language Geography The republic of Indonesia Jakarta Republic Rupiah (IDR) 236 million people Bahasa Indonesia 17,508 islands & 1,919,440 sq km of land area & coastline 54,716kms Continued... : Continued... Ethnicity GDP GDP per capita Revenues Expenses Inflation rate 85% muslims, 10% christians, 2% muslims US$932.1 billion US $3,900 $92.62 billion $98.88 billion 5.3% GDP growth : GDP growth Setting up Business Activities and a Company in Indonesia : Setting up Business Activities and a Company in Indonesia To establish a business in Indonesia, if you do not require a local legal entity for the investment proposed, you could choose to appoint an Agent or Distributor, or set up a Representative Office. Many foreign investors at the early stage of entering the Indonesia market choose to set up an Agency Agreement or Representative Office, then later after the business starts to grow they will apply for a Foreign Direct Investment Company (FDI) status. To establish a representative office, the company needs to issue 3 letters : To establish a representative office, the company needs to issue 3 letters Letter of Intent - stating the intention of the company to establish a representative office Letter of Appointment - stating the appointment of the chief representative Letter of...
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...Photo of Anak Krakatau, the "Son of Krakatoa," during a minor eruption in Indonesia. flydime on Flickr.com Updated December 04, 2014. In the past two decades, Indonesia has begun to emerge as an economic power in Southeast Asia, as well as a newly democratic nation. Its long history as the source of spices coveted around the Indian Ocean world shaped Indonesia into the multi-ethnic and religiously diverse nation that we see today. Although this diversity causes friction at times, Indonesia has the potential to become a major world History Philippines Indonesia Trade Christianity Facts Jakarta Indonesia Capital and Major Cities: Capital: Jakarta, pop. 8,800,000 Major Cities: Surabaya, pop. 3,000,000 Medan, pop. 2,500,000 Bandung, pop. 2,500,000 Serang, pop. 1,786,000 Yogyakarta, pop. 512,000 Government: The Republic of Indonesia is centralized (non-federal) and features a strong President who is both Head of State and Head of Government. The first direct presidential election took place only in 2004; the president can serve up to two 5-year terms. The tricameral legislature consists of the People's Consultative Assembly, which inaugurates and impeaches the president and amends the constitution but does not consider legislation; the 560-member House of Representatives, which creates legislation; and the 132-member House of Regional Representatives who provide input on legislation that affects their regions. The judiciary includes not only...
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...JAKARTA 101 FOR EPs ICX GCDP in AIESEC UI Jakarta, Indonesia! Jakarta in a Glimpse Jakarta is the Indonesia’s economic, cultural and political center. It is the most populous city in Indonesia and in Southeast Asia, and is the tenth-largest city in the world. It is seldom viewed as a center for tourism other than the old part of the city, which is a popular tourist destination. However the Jakarta authority saw the opportunity to develop the city's reputation as a service and tourism city. There are many new tourism infrastructures, entertainment centers, and international-class hotels and restaurants being built in Jakarta. Jakarta also possesses many historical places and cultural heritage. Chaotic, crowded, and cosmopolitan, Jakarta, the capital of Indonesia, is a city of contrasts. Home to millions of people from around the world, the city is a mixture of languages and cultures, poverty and wealth. The city boasts some of the best nightlife in Asia and some of the worst traffic. 1. Weather in Jakarta The weather in Jakarta is tropical with high humidity and lots of rainfall. Jakarta weather really only has two seasons, with a rainy season (November to June) and a dry season (July to October). Even during the dry season there are some rainy days. Wet season From November till June Jakarta experiences wet season. January is the wettest month of the year when it receives around 400 mm of precipitation. Moreover, the month witnesses only...
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...Indonesia Introduction Indonesia is a country located in Southeastern Asia between the Indian Ocean and Pacific Ocean. It has a strategic location astride major sea lanes and is an archipelago of 17,508 islands, some of which border Timor-Leste, Malaysia, and Papua New Guinea. The government system is a republic. The chief of state and the head of government is the President. Indonesia has a mixed economic system in which the economy includes a variety of private freedom, combined with centralized economic planning and government regulation. Indonesia is a member of the Asian Pacific Economic Cooperation (APEC) and Association of Southeast Asian Nations (ASEAN). Key Economic Facts Budget Expenditures: Budget revenues: Debt - external: Distribution Of Family Income GINI Index: Exports: GDP per capita, PPP: GDP, PPP: Imports: Industrial production growth rate: Inflation rate (consumer prices): Labor force: Population: Unemployment rate: $.15 trillion (2011) $.14 trillion (2011) $.19 trillion (2011) 36.80% (2009) $201.50 billion (2011) $4,667.96 (2011) $1.13 trillion (2011) $166.10 billion (2011) 4.10% (2011) 5.40% (2011) 117.40 million (2011) 248.65 million (2012) 6.60% (2011) Risk Assessment (Provided by Coface) Country rating: B - Political and economic uncertainties and an occasionally difficult business environment can affect corporate payment behaviour. Corporate default probability is appreciable. Business Climate rating: C - The business environment is difficult. Corporate...
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...Indonesia (Listeni/ˌɪndəˈniːʒə/ in-də-nee-zhə or /ˌɪndoʊˈniːziə/ in-doh-nee-zee-ə; Indonesian: [ɪndonesia]), officially the Republic of Indonesia (Indonesian: Republik Indonesia [rɛpublik ɪndonesia]), is a sovereign island country in Southeast Asia and Oceania. Indonesia is the largest island country in the world by the number of islands, with more than fourteen thousand islands.[8] Indonesia has an estimated population of over 255 million people and is the world's fourth most populous country and the most populous Muslim-majority country. The world's most populous island of Java contains 51% of the country's population. Indonesia's republican form of government includes an elected legislature and president. Indonesia has 34 provinces, of which five have Special Administrative status. The nation's capital city is Jakarta. The country shares land borders with Papua New Guinea, East Timor, and the Malaysian Borneo. Other neighbouring countries include Singapore, the Philippines, Australia, Palau, and the Indian territory of the Andaman and Nicobar Islands. Indonesia is a founding member of ASEAN and a member of the G-20 major economies. The Indonesian economy is the world's 16th largest by nominal GDP and the 8th largest by GDP at PPP. The Indonesian archipelago has been an important trade region since at least the 7th century, when Srivijaya and then later Majapahit traded with China and India. Local rulers gradually absorbed foreign cultural, religious and political models...
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...INDONESIA President: Susilo Bambang Yudhoyono (2004) Land area: 699,548 sq mi (1,811,831 sq km); total area: 741,096 sq mi (1,919,440 sq km) Population (2010 est.): 242,968,342 (growth rate: 1.1%); birth rate: 18.4/1000; infant mortality rate: 28.9/1000; life expectancy: 71.0; density per sq km: 130 Capital and largest city (2003 est.): Jakarta, 13,194,000 (metro. area), 8,389,443 (city proper) Other large cities: Surabaya, 3,038,800; Bandung, 2,733,500; Medan, 2,204,300; Semarang, 1,267,100 Monetary unit: Rupiah Geography Indonesia is an archipelago in Southeast Asia consisting of 17,000 islands (6,000 inhabited) and straddling the equator. The largest islands are Sumatra, Java (the most populous), Bali, Kalimantan (Indonesia's part of Borneo), Sulawesi (Celebes), the Nusa Tenggara islands, the Moluccas Islands, and Irian Jaya (also called West Papua), the western part of New Guinea. Its neighbor to the north is Malaysia and to the east is Papua New Guinea. Indonesia, part of the “ring of fire,” has the largest number of active volcanoes in the world. Earthquakes are frequent. Wallace's line, a zoological demarcation between Asian and Australian flora and fauna, divides Indonesia. Languages: Bahasa Indonesia (official), English, Dutch, Javanese, and more than 580 other languages and dialects Ethnicity/race: Javanese 45%...
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...Indonesia is a unique country that consists of many ethnics with their manner and customs respectively. Nevertheless, the foundation of Indonesia is “Bhinneka Tunggal Ika” which means even we are different but we are still together. They also have several unique ways to solve their problem in an environment. The unique ways are musyawarah and gotong-royong. Musyawarah is the way of people in an environment to solve the problem in term of to make new role and to make a decision. This way usually is used in small environment such as RT (rukun tetangga). In musyawarah, all people are in the same level and they can give any comment or opinion. Usually, vote is the way to decide which action as the best option. They solving the problem to discuss it until mufakat (deal with a decision and no one harm of the decision). In the fact, some companies in Indonesia are using musyawarah to solve their own problem. Another action that very describing Indonesian is gotong-royong. Gotong-royong is the activity that does together in order to reach a goal or a team work. Usually, they do this stuff when they are cleaning their environment in small area. In several small towns, they do gotong-royong to make a new house of people. Maybe, some people think if gotong-royong does voluntarily, but honestly it is not true, they do it because they think if they help people now, when they need a help they can get it too. In a nutshell, musyawarah and gotong-royong is unique way of Indonesian people...
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...National Competitiveness Based on World Economic Forum Report and Doing Business Report THE INDONESIA CASE MAIN SOURCES: * World Economic Forum, Global Competitiveness Report 2015-2016 * World Bank, Doing Business Report 2015-2016 * “The Economist” * “The Age” * “CNBC, World Economy” * “Indonesia-Investments” LORENZO TRABACCHI 4502720 INDONESIA: A CASE OF COMPETITIVENESS The World Economic Forum approach: Indonesia case Overview According to the WEF Global Competitiveness Report 2015-2016, Indonesia has an overall position of 37 out of 140 countries, with a score of 4.52 from 1 to 7 and a positive trend line which shows the evolution in percentile rank since 2007. Even the rank among 2014-2015 economies was 37, while the GCI 2014-2015 rank was 34 out of 144 economies. The graph here, shows that, the GDP per capita in Indonesia, since 1990 to 2014, had always grown in parallel with but more than the average of other countries in the same regional area (Emerging and Developing Asia). Since 2012-2013, Indonesia has always grown in terms of GCI, moving from the 50th to the 37th position with a score shifted from 4.4 to 4.5. Overall position of the country in the regional area Behind Singapore (2nd), the five largest members of the Association of Southeast Asian Nations (ASEAN)—namely Malaysia (18th, up two), Thailand (32nd, down one), Indonesia (37th, down four), the Philippines (47, up five), and Vietnam (56th, up 12)—all rank in...
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...* Indonesia is a secular country in the sense that its political policies are not necessarily derived from religious teachings and that it does not have a single state religion. * Religion: play a very important role in Indonesian society. Indonesian nationals are obliged to adhere to one of the religions that have been selected by the government (Islam, Christianity, Catholicism, Hinduism, Buddhism and Confucianism), while atheism is not an option. Political decentralization: Brought more power to the regional governments and this development implied that regional decision-making has been more affected by the regional religious context. Muslim areas: implemented policies like regional banning of pork business or the obligation for women to ware the headscarf. President: Non-Muslim and also on 2001 Megawati Soekarnoputri became the first female Indonesian president in 2001, only a small minority rejected her based on certain Islamic doctrine that women cannot take leading positions. The Indonesian political system consists of three branches: • Executive branch: consists of the president, the vice president and the cabinet. ( Public vote elections) • Legislative branch: is the People’s Consultative Assembly. It has the power to set or change the Constitution and appoints (or impeaches) the president. • Judicial branch: Indonesia's judiciary system is the independent Supreme Court. It is the final court of appeal and also deals with disputes between lower...
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...analysis Political Factors Indonesia has undergone a political transformation since the upheaval of 1998 which saw the fall of General Suharto after 30 years of authoritarian rule and a collapse of the Rupiah. The country is now a vibrant democracy that is continuing to strengthen its political structures and deepen the enfranchisement of the population. In Indonesia, there are parliamentary and presidential elections every five years. After every five years, election is being contested for president and vice president post by direct vote of the citizenry. In 20 October 2014, Joko Widodo has been elected as president and Jusuf Kala is the vice president. However, corruption and slow-moving bureaucracy continues to be a persistent issue. The government faces great challenges in consolidating Indonesia's democratic transition, restoring the country's economic momentum, and in bringing the benefits of development to all Indonesia's citizens. Among the key political issues with economic implications are periodic outbreaks of communal violence around the country, particularly in Central Sulawesi; demands for greater autonomy or independence in Papua; the presence of the regional terrorist organization Jemaah Islamiyah (JI); and deep-seated weaknesses in the rule of law at all levels throughout the country. Economical Factors Indonesia is considered as a developing country. They have hub of natural resources such as in oil production. The top exports of Indonesia are Coal Briquettes ($22...
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...1. Population of Indonesia With a population totaling around 250 million individuals, Indonesia is the fourth largest country with regard to population size. Its ethnic composition is characterized by a wide variety as the country contains hundreds of different ethnic groups and cultures. However, more than half of the population can be classified as belonging to the two main ethnic groups: Javanese (41 percent of the total population) and Sundanese (15 percent of the total population). Both these groups originate from the island of Java, Indonesia's most populous island, which contains almost sixty percent of the country's total population. When the island of Sumatra is included, this figure rises to approximately eighty percent of Indonesia's total population, indicating a significant population concentration in the western part of the country. The most populous province is West Java (with more than 43 million people), while the least populous province is that of West Papua in the far eastern region of Indonesia (having around 761,000 people). Map of Indonesia Five Most Populous Provinces (in millions) Province | Population | 1. West Java | 43.1 | 2. East Java | 37.5 | 3. Central Java | 32.4 | 4. North Sumatra | 13.0 | 5. Banten (Java) | 10.6 | Source: Statistics Indonesia Population Census 2010 This section discusses a number of important aspects regarding Indonesia's demographic composition...
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...Indonesia and its Future Indonesia, the world’s fourth-most populous country after China, India and the US is the largest economy in Southeast Asia. Although there had been a little concern over economy slowdown, the country has grown rapidly in past years. According to the Economist, “gross national income per head doubled during the decade to 2012, to $4,730 and the proportion of the population living in poverty fell by half, from 24% in 1999 to 12% in 2012”. Indonesia recently had the 3rd presidential election last July. The new president will set a future path of Indonesia and hence, not only the people in the nation, the world has paid attention to the result. Joko Widodo, the winner of Indonesia's presidential election is expected to take office in October and a question Indonesia’s economy faces with the new government is that whether its economy will remain on the rise or face downturn. I. Opportunities Many investors and global corporations believe that there are growing opportunities in Indonesia. Especially consumer-focused companies like Ikea and automakers are looking at the bright side - young generation, growing middle class, and increasing demand - putting great investment into Indonesia. Indonesia is known to have its half the population aged below 30; the median age being 29. The number is definitely a striking when compared to aging societies like China and the West. Also, the number of middle class is expected to almost double to 141 million while...
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...Religion Islam Indonesia is the world's most populous Muslim-majority country, with 88 percent of its citizens identifying as Muslim. Traditionally, Muslims have been concentrated in the more populous western islands of Indonesia such as Java and Sumatra. In less populous eastern islands, the Muslim population is proportionally lower. Most Indonesian Muslims are Sunnis. Around one million are Shias, who are concentrated around Jakarta while others are Sufi. Christianity The Government of Indonesia officially recognizes the two main Christian divisions in Indonesia, Protestantism and Roman Catholicism, as two separate religions. Protestantism Protestantism arrived in Indonesia during the Dutch East Indies (VOC) colonization, around the sixteenth century. VOC policy to ban Catholicism significantly increased the percentage of Protestant believers in Indonesia. Missionary efforts for the most part did not extend to Java or other already predominantly Muslim areas. The religion has expanded considerably in the 20th century, marked by the arrival of European missionaries in some parts of the country, such as Western New Guinea and Lesser Sunda Islands. Following the 1965 coup, all non-religious people were recognized as Atheist, and hence did not receive a balanced treatment compared to the rest of the citizens. As a result, Protestant churches experienced a significant growth of members, partly due to the uncomfortable feeling towards the political aspirations of...
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...Indonesia: Searching For The Ratu Adil In the 1966 Italian film ‘The Battle of Algeries, the insurgent leader Ben M'Hidi is having a conversation with one of his foot soldiers named Ali. During this scene Ben M’Hidi makes an observation that was true of many nationalist movements for self-determination during the 20th century by stating “It's hard to start a revolution. Even harder to continue it, and hardest of all to win it. But, it's only afterwards, when we have won, that the true difficulties begin. In short, Ali, there's still much to do. “ (Pontecorvo, 1966). Ben M’hidi’s words have rung true of a great many of the national revolutions as the world moved from an imperial world order to one of sovern nation states. The Indonesian archipelago has a history of civilization going back as far as the 7th century CE, but not a united one. The diversity of the region is exemplified in its current national motto, “Bhinneka Tunggal Ika” (Unity in Diversity). However, prior to the 20th century this unity was largely nonexistent, and instead consisted of rival kingdoms and sultanates, vying for power with each other and technologically and socially backwards in relation to the Imperial powers which were becoming aware of the potential the region could serve to those who controlled its trade routes and resources. In the 17th century CE, Dutch traders realized the potential of East Indies trade, and set forward in consolidating power over the region. To gain control over the...
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...1.0 Question 1 Indonesia began a process of rapid government decentralization in 1999 from a formerly strong centralized government structure (Keith Green, 2009). According to Darmawan (2008), under former president Habibie, this reform process was conducted due to the introduction of new decentralization guidance in 2001 under Law 22/1999 on regional governments and Law 25/1999 on fiscal balance between the central and regional governments have changed the intergovernmental relations in Indonesia. Then, they were replaced by Law 32/2004 and Law 33/2004. The World Bank declared that decentralization is defined as “the transfer of authority and responsibility for public functions from the central government to intermediate and local governments or quasi-independent government organizations and/or the private sector”. Decentralization is also regarded as a way of diffusing social and political tensions and ensuring local cultural and political autonomy (Bardhan, 2002, p. 185). Local governments in Indonesia started to develop and to govern their regions by gaining huge transfer of authority and ability to make their own decision-making from central government with these laws. Indonesia begins with the components in political decentralization and then move forward to fiscal decentralization and finally the administrative decentralization. According to Cheema, Nellis and Rondinelli (1999), political decentralization aims to give citizens or their elected representatives more...
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