Doing Business in Indonesia

The purposes of the subject “Foreign Trade and Business in the Republic of Indonesia” are the following:

1. To analyze the Indonesian Economy and Global Trade;
2. To know the business opportunities in the Republic of Indonesia;
3. To explore the Indonesian trade relations with the country of the student;
4. To know the Indonesian Trade Agreements;
5. To examine the profile of Indonesian businesspeople and companies;
6. To develop a business plan for the Indonesian Market.

The Subject “Foreign Trade and Business in Indonesia” belongs to the following Online Higher Educational Programs taught by EENI Global Business School:

Doctorate: Islamic Business, Asian Business, World Trade.

Masters: International Business, Foreign Trade.

Learning materials in ( Indonesia Indonesie).

1. Credits of the subject “Foreign Trade and Business in Indonesia”: 3 ;
2. Duration: three weeks.

EENI in Bahasa Indonesia: Master Bisnis Internasional.

1. Access to the Nanning-Singapore Corridor
   1. Pan-Beibu Gulf Economic Zone.
2. Access to the East-West Corridor (Myanmar-Vietnam).

Indonesian Market Access and Trade Agreements:

1. Association of Southeast Asian Nations (ASEAN)
   1. ASEAN Free-Trade Area (AFTA);
   2. East ASEAN Growth Area;
   3. Free Trade Agreements (ASEAN member): Australia-New Zealand, Canada, the People's Republic of China, India, Japan, Korea, Russia, the United States, European Union, and Pakistan;
   4. EU-Indonesia Partnership and Cooperation Agreement;
   5. Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT).
2. Asia-Pacific Economic Cooperation (APEC);
3. India-Indonesia Economic Cooperation Agreement;
4. Regional Comprehensive Economic Association (RCEP);
5. Islamic Trade Preferential System (OIC);
6. Indian-Ocean Rim Association (IORA);
7. Indonesia-Australia Comprehensive Economic Partnership Agreement;
8. Chile-Indonesia Free Trade Agreement;
9. Japan-Indonesia Free Trade Agreement (FTA;
10. Indonesia-Pakistan Free Trade Agreement;
11. Global System of Trade Preferences (GSTP);
12. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - Candidate Country.

1. WTO
   1. Agreement on Trade in Services (GATS);
   2. Agreement on the Application of Sanitary Measures;
   3. Agreement on Technical Barriers to Trade;
   4. Agreement on Preshipment Inspection;
   5. Agreement on Safeguards;
   6. Trade Facilitation Agreement.
2. TIR Convention (Road Transport, IRU);
3. WCO
   1. Revised Kyoto Convention.
4. International Bureau of Containers and Intermodal Transport (BIC);
5. Chicago Convention (ICAO);
6. International Maritime Organization (IMO)
   1. Customs Convention on Containers;
   2. Istanbul Convention - not a member.

Islamic Organizations:

1. Organization of Islamic Cooperation (OIC)
   1. Committee for Economic Cooperation (OIC-COMCEC);
   2. Islamic Chamber of Commerce and Industry (ICCI);
   3. Islamic Centre for Development of Trade (ICDT);
   4. Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC).
2. Islamic Development Bank (IsDB);
3. Asia-Middle East Dialogue;
4. Arab Development Funds;
5. OPEC Fund for International Development (OFID).

Asian Trade and Economic Organizations:

1. ESCAP;
2. Asian Development Bank (ADB);
3. Boao Forum for Asia;
4. Asia Cooperation Dialogue;
5. East Asia-Latin America Cooperation;
6. Colombo Plan;
7. Africa-Asia Strategic Partnership.

Global Organizations:

1. UN
   1. UNCTAD;
   2. ITC;
   3. UNCITRAL;
   4. WIPO.
2. WB;
3. WTO;
4. IMF;
5. Pacific Economic Cooperation Council (PEEC);
6. Organization for Economic Cooperation and Development (OECD) (Key Partner).

The Republic of Indonesia:

1. The Republic of Indonesia is the biggest archipelago nation in the World, comprising 17,508 islands stretching along 5,120 kilometers from east to west, and 1,760 kilometers from north to south;
2. Total population of Indonesia: 255 million people;
3. The main Indonesian ethnic group are Javanese (42% of the Indonesian population);
4. Indonesian Diaspora: 8 million of Indonesians;
5. Indonesian Capital: Jakarta (10 million people);
6. 30 million people live on the island of Java, the most populous island of the World;
7. Indonesian land borders: Papua New Guinea, East Timor, and Malaysia;
8. Neighboring countries: Singapore, the Philippines, Australia, and the Indian territory of Andaman and Nicobar Islands;
9. Bahasa Indonesia (Malay) is the correct term for Indonesian language (Official language)
   1. Other Indonesian Languages are Javanese (84% of the Indonesian population) and Sundanese (34%);
   2. More than 700 regional languages.
10. Type of Government of Indonesia: Unitary Presidential constitutional Republic;
11. Area of Indonesia: 1,904,569 square kilometers;
12. Indonesian independence: 1949 (The Netherlands).

Main religion in Indonesia: Sunni Islam (209 million, 87% of the Indonesian population).

1. Fiqh (Islamic Jurisprudence): Shafi;
2. The Indonesian Constitution implements freedom of religion;
3. Other religions in Indonesia:
   1. Hinduism (3 million);
   2. Christians (20 million);
   3. Buddhism;
   4. Confucianism.

Indonesia is a member of the Islamic Civilization.

Indonesian Economy:

1. Indonesia is rich in natural resources;
2. 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;
3. 90% of the Indonesian population works in agriculture;
4. The fluctuations in the global prices of traditional export commodities have led to a change in the recent years in the Indonesian economy structure;
5. Indonesia produces various types of cars, lorries, buses, and motorcycles under Licensing from foreign producer;
6. Indonesia also produces electronic equipment and electrical appliances;
7. The Indonesian Aviation industry has been growing, and new production lines are coming on-stream as well its Universal Maintenance Centre for Overhaul of aircraft engines. The aircraft produced are for national use as well as for export;
8. The Indonesian 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);
9. Tourism is gaining a more important sector as a foreign exchange earner;
10. Currency of Indonesia: Indonesian rupiah (Rp) (IDR).

International Trade of Indonesia.

1. Petrol and gas contribute to 70% of total export earnings and 60% of the Indonesian Government revenues;
2. Besides petroleum and liquefied natural gas, forestry products, rubber, coffee, tea, tin, nickel, copper, palm products, and fish make significant contributions to the export earnings of Indonesia;
3. In the recent years some steps have been taken to promote and stimulate the non-petroleum exports, which include handicrafts, textiles, precious metals, tea, tobacco, cement, fertilizers as well as manufactured products;
4. Air transport and sea ports are being widespread to cater the growing traffic on both local and International sectors, of passengers as well as freight;
5. The Port of Jakarta is the largest Indonesian seaport and one of the largest seaports in the Java Sea basin, with an annual traffic capacity of 45 million tones of cargo and 4,000,000 TEU (twenty-foot equivalent unit).

(c) EENI Global Business School (1995-2023)
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