Doing Business in Indonesia
EENI - Business School.
Subject (Course): International Trade and Business in Indonesia -
- Introduction to the Republic of Indonesia (South-east Asia).
- Indonesian Economy.
- Petrol and gas sectors
- International Trade of Indonesia
- Doing Business in Jakarta.
- The industrial states.
- Infrastructure facilities.
- The Indonesian Banking sector
- Sabang Freeport zone.
- Foreign Direct Investment (FDI) in Indonesia.
- Negotiating in Indonesia.
- Case Study:
- Telkom Group.
- PT Panggung Electric Citrabuana.
- Indonesian Muslims Businesspeople
- Sandiaga Salahuddin Uno
- Abdul Latief
- Aburizal Bakrie
- Basrizal Koto
- Doctor I.R. Ciputra
- Introduction to Indonesian language (Bahasa)
- Access to the Indonesian Market
- Business Plan for Indonesia
Purposes of the subject “Doing Business in the Republic of Indonesia”:
- To analyse the Indonesian economy and foreign trade
- To evaluate business opportunities in the Republic of Indonesia
- To explore Indonesia's trade relations with the student's country
- To know Indonesia's Free Trade Agreements (FTAs)
- To examine the profile of Indonesian businesspeople and companies
- To develop a business plan for the Indonesian Market
Sample of the subject - Business in Indonesia
Subject Description (Business in Indonesia).
The Republic of Indonesia:
- The Republic of Indonesia is the biggest archipelago nation in the World, comprising 17,508 islands stretching along 5,120 kilometres from east to west, and 1,760 kilometres from north to south.
- The total population of Indonesia is 255 millions of people.
- The main ethnic group: Javanese (42% of the Indonesian population)
- Indonesian Diaspora: 8 million of Indonesian
- Indonesian Capital: Jakarta (10 millions of people)
- 30 millions of people live on the island of Java, the most populous island of the World.
- Indonesia land borders:
Papua New Guinea, East Timor, and
- Neighbouring countries:
Singapore, the Philippines, Australia, and the Indian territory of Andaman and Nicobar Islands.
- Bahasa Indonesia (Malay) is the correct term for the Indonesian
language (Official language)
- Other Indonesian Languages: Javanese (84% of the population) and Sundanese (34%)
- More than 700 regional languages
- Type of Government: Unitary Presidential constitutional Republic
- Area: 1,904,569 square kilometres
- Indonesian independence: 1949 (The Netherlands)
The main religion in Indonesia: Sunni Islam (209 million, 87% of the Indonesian population).
- Fiqh (Islamic Jurisprudence):
- The Indonesian Constitution implements freedom of religion.
- Other religions in Indonesia:
- Hinduism (3 million)
- Christians (20 million)
Indonesia is a member of the Islamic Civilisation.
- Indonesia is rich in natural resources.
- In the agricultural
sector, Indonesia has become self-sufficient in rice and does not need to import this staple food as it had for years.
- 90% of the Indonesian population works in agriculture
- Fluctuations in the global prices of the traditional export commodities have led to a change in recent years in the structure of the economy.
- Indonesian plants assemble various types of cars, lorries, buses, and motorcycles under licence from foreign producers.
Also, produces electronic equipment and electrical appliances.
- Indonesian aviation industry has been growing, and new production lines are coming on-stream as well its Universal Maintenance Centre for the overhaul of aircraft engines. The aircraft produced are for national use as well as for export.
- The industrial estates are available in all provinces of Indonesia. The large-scale industrial estates are found in Jakarta, West Java (Bekasi, Karawang, Purwakarta), Banten (Tangierang, Serang), Central Java (Semarang, Cilacap), Yogyakarta (Piyungan), East Java (Surabaya, Gresik, Sidoarjo, Pasuruan, Probolinggo), North Sumatera (Medan), West Sumatera (Padang), Lampung, Riau (Batam Island, Bintan Island), South Sulawesi (Makassar), and East Kalimantan (Bontang).
- Tourism is gaining a more important sector as a foreign exchange earner.
- To production and growth in the Indonesian industry sector, the Government of Indonesia has formulated new policies and improved facilities. Substantial progress has been made in communications and transport and since 1976, Indonesia has had its communications satellite system
- Currency: Indonesian rupiah (Rp) (IDR)
BKPM is an investment service agency of the Indonesian Government created with the effectively to implement the enactment of law on foreign as well as Indonesian investment.
PT Telekomunikasi Indonesia is the biggest full information and communications service and network provider in Indonesia.
The company supply fixed wire lines, fixed wireless, cellular as well as data and the Internet and network interconnection services, both directly and through its associate companies and subsidiaries.
Foreign Trade of Indonesia.
- Petrol and gas contribute
70% of the total export earnings and 60% of the Government revenues.
- Besides petroleum and liquefied natural gas, forestry products, rubber, coffee, tea, tin, nickel, copper, palm products, and fish make significant contributions to export earnings.
- In recent years some steps have been taken to promote and stimulate non-petroleum exports, which include handicrafts, textiles, precious metals, tea, tobacco, cement, fertilizers as well as manufactured products.
- Air and sea ports are being
widespread to cater to the growing traffic on both local and International sectors, of passengers as well as freight.
- Port of Jakarta is the biggest Indonesian seaport and one of the largest seaports in the Java Sea basin, with an annual traffic capacity of 45 million tonnes of cargo and 4,000,000
TEU (twenty-foot equivalent unit).
Indonesia's Market Access and Trade Agreements:
- India-Indonesia Economic Cooperation Agreement
- Asia-Pacific Economic Cooperation (APEC)
- Association of South-East Asian Nations (ASEAN)
- ASEAN Free Trade Area (AFTA)
- East ASEAN Growth Area
- Free Trade Agreements (ASEAN member): Australia-New Zealand, Canada, the People's Republic of China, India, the European Union, Japan, Korea, Russia, the United States, and Pakistan.
- Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)
- Trade Preferential System of the OIC
- Indian-Ocean Rim Association (IORA)
Indonesia is a member of:
- Islamic Development Bank
- Asian Development Bank (ADB)
- Economic Social Commission Asia-Pacific (ESCAP)
- Organisation of Islamic Cooperation (OIC)
Introduction to Indonesian language (Bahasa):