Business in Indonesia. Economy. Foreign trade. Indonesian companies

Course summary (Doing business in Indonesia)

Doing Business in Jakarta. Foreign direct investment in Indonesia FDI. Negotiating. Telkom Group. PT Panggung Electric Citrabuana. Banking. Sabang Freeport Zone.

Indonesian economy.

The country is rich in natural resources. While 90% of the population is engaged in agriculture, oil and gas contribute 70% of total export earnings and 60% of the government revenues. However, fluctuations in world prices of traditional export commodities have led to a change in recent years in the structure of the economy. Tourism is gaining a more important sector as a foreign exchange earner.

To production and growth in the industry, the government has formulated new policies and improved facilities. Significant progress has been made in communications and transportation and since 1976, Indonesia has had its own communications satellite system which has enabled rapid expansion of telephone, television and broadcast facilities to all 27 provinces.

Air and sea ports are being extended to cater to the growing traffic on both domestic and international sectors, of passengers as well as freight. Besides oil and liquefied natural gas (LNG), forestry products, rubber, coffee, tea, tin, nickel, coper, palm products and fish make important contributions to export earnings.

In recent years a number of steps have been taken to promote and stimulate non-oil exports which include handicrafts, textiles, precious metals, tea, tobacco, cement, fertilizers as well as manufactured goods.

To meet domestic needs, Indonesian plants assemble various types of automobiles, trucks, buses and motorcycles under license from foreign manufacturers. Also produced are electronic equipment and electrical appliances. The 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 are for domestic use as well as for export. 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.

In Indonesia, the fallout from the crisis began to take hold towards the end of 2008.

Industrial estates are available in almost all provinces of Indonesia. The large scale industrial estates are found in Jakarta, West Java (Bekasi, Karawang, Purwakarta), Banten (Tangerang, 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) . Bonded Zones.

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 around 45 million tons of cargo and 4,000,000 TEU's.

Investing in Indonesia FDI.
Indonesia is a promising investment destination country with huge potential resources and market. Indonesia is ranked 122 out of 183 economies. Singapore is the top ranked economy in the Ease of doing business. Indonesia is ranked 41 overall for Protecting Investors.

BKPM is an investment service agency of the Indonesian Government created with the purpose to effectively implement the enactment of law on foreign as well as domestic investment.

PT Telekomunikasi Indonesia Tbk (TELKOM) is the largest full information and communications service and network provider in Indonesia. TELKOM provide fixed wirelines, fixed wireless, cellular as well as data and Internet and network interconnection services, both directly and through its associate companies and subsidiaries. As of December 31, 2007, the number of TELKOM subscribers reached 63.0 million, consisting of 8.7 million fixed wireline and 6.4 million fixed wireless subscribers and 47.9 million cellular subscribers. TELKOM’s subscriber growth of 29.9% in 2007.

The Republic of Indonesia is the largest archipelago country in the world, comprising 17,508 islands stretching along 5,120 kilometers from east to west, and 1,760 kilometers from north to south. The islands scatter over more than one tenth of the equator between Southeast Asia and Australia, covering a land area of around 2 million square kilometers and territorial waters nearly four time of that size. The total population of Indonesia is 222 million for 2006. 130 million people live on the island of Java, the world's most populous island.

The majority (about 85%) of the population follows Islam. Freedom of religion is implemented by the Indonesian Constitution.

Bahasa Indonesia is the correct term for the Indonesian language. At times foreigners may refer to it as only Bahasag

EENI In Bahasa Indonesia: Master Bisnis Internasional

Indonesia land borders: Papua New Guinea, East Timor and Malaysia. Neighboring countries: Singapore, Philippines, Australia, and the Indian territory of the Andaman and Nicobar Islands.

International Economic Relations. Indonesia is member of: Association of Southeast Asian Nations (ASEAN), Asia-Pacific Economic Cooperation (APEC), Pacific Economic Cooperation Council (PECC), IMT - GT, BIMP-EAGA, Ocean Rim Association for Regional Cooperation (IORARC), Organization Islamic Conference, Islamic Development Bank, Boao Forum For Asia (BFA), Asia Cooperation Dialogue (ACD), Forum for East Asia-Latin America Cooperation (FEALAC), Asia-Europe Economic Meeting (ASEM), Asia - Middle East Dialogue (AMED), Asian Development Bank (ADB), Economic and Social Commission for Asia and the Pacific (ESCAP), Colombo Plan

Indonesia Free Trade Agreements (FTAs). ASEAN Economic Community - ASEAN Free Trade Area (AFTA).
ASEAN Agreements: Australia New Zealand, Canada, China, India, European Union, Japan, Korea, Russia, US, Pakistan. India - Indonesia CECA

Indonesia, Jakarta, Business, Economy, foreign trade, Indonesian, Companies, foreign, Direct Investment, FDI, Negotiating, Telkom Group, PT Panggung, Electric Citrabuana, Industrial, Estates, infrastructure, Facilities, Banking, Sabang, Freeport Zone