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Term paper for "International Business" course @ PSUT

Asma'a Al-kayyali

on 10 December 2014

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Transcript of Indonesia

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- Indonesia was deeply affected by the economic crisis of 1997-98, The country experienced “twin crisis”, in the sense that economic crisis was accompanies by and indeed precipitated regime collapse..
1- An application has to be submitted in the Indonesian language to the DGIPR with the required documents.

2- Applications that are complete will be examined by the DGIPR for approval or rejection.

Legal & political issue
Population & Culture
Indonesia introduced decentralization in 2001 in the late Suharto era. Indonesia decentralized at an extremely difficult time, when the central government was greatly weakened, administratively and financially.

Indonesia is now considered the world’s largest democracy, having navigated the transition from authoritarian rule with remarkable success (T. Nguyen, 2010).

Business Etiquette
1- Smile When interacting with other people even toward strangers.

2- Saving one's face: means one should carefully consider others' dignity and avoid them experiencing shame or humiliation.

3- Business dress code are pretty much the same as international standard.
Corruption is clearly the number one issue on the minds of those with an interest in Indonesian legal system. And respect for human rights within the law enforcement agencies is basically law

Indonesia has promulgated and implemented new anti-corruption laws procurement systems in government and state-owned enterprises.
Risks & Barriers
1- Indonesia’s business environment is still plagued by poor infrastructure and weak institutions.

2- Indonesia is still ranked 100th out of 183 in Transparency International’s corruption perception index.

3- “Ease of starting a business” measurements, Indonesia ranked 128th (behind Ethiopia) and 155th out of 185 countries.

Congratulations !
- With an estimated population of
240.8 million
, Indonesia is the fourth most populous nation in the world after China, India and the USA.
- Most Indonesians are of Malay descent and the largest ethnic group, the Javanese, make up 40% of the total population.
- English language skills are actively encouraged in recognition of the opportunities
- The official language of the country is Bahasa Indonesia, which is similar to Malay. This is the second language of many rural Indonesians after their local tongue.
- The country has more than a 90% literacy rate.
- Over 85% of the population follow the Muslim faith, but there are significant minorities of Hindus (centered in Bali)and Christians.
- The population is expected to grow by
2.5 million
people per year through
- Straddling the equator from latitude 60N to 110S, Indonesia has a typically tropical climate marked by heavy rainfall as well as high humidity and temperatures.
- In most parts of the country, temperatures generally range from 23 to 33 C.
Indonesian Economy
The Indonesian legal system is a product of the 352-year Dutch colonial period. The Dutch system follows the French civil law of code law. The codes were inspired by Roman law and its Justinian Code.

Since Indonesia gained its independence in 1945 the state became based on law in which state policies will be based on the constitution. Colonial laws were replaced with national law

3- Upon the issuance of the registration approval
by the DGIPR, the application is published in the
Official Marks Gazette for three months.
I can't force you to choose Indonesia.. Just Think & you'll choose ! ;)
- After a remarkably successful presidential and
general elections in 2004, the economies were
fairly open and have achieved reasonable macroeconomics outcomes.
Prior to the crises, the central bank was targeting a fixed exchange rate against the U.S. dollar. By January 1998 the Rupiah dollar rate had fallen from 2,500 to 17,500 by far the largest depreciation among the crisis economies. The rate now equals 11,772.10
Exchange Rate
GDP share in ASEAN: Indonesia is still one of the largest economies in ASEAN. In 2006, Indonesia with a GDP of $796.3 billion. In 2012, Indonesia’s GDP reached $ 878.0 Billion with a growth rate of 6.2% and an inflation rate of 6.4 %
Growth in Indonesia returned, Economic management has been good once the immediate crisis passed. The keys was the quick return to macroeconomic management and the maintenance of a broadly open economy.
Economic summary
Asma'a Al-kayyali
Full transcript