Analysis : Impacts on the business |
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AboutIndonesia | As
a company doing business in Indonesia, investors should be concerned with
the political unrest of the country which can effect their company.
In addition, the high software piracy rate tells a little about the warning
signs of doing business as an outsider. But at the same time, there
is a great optimism about the slow growth and improvement of the country's
infrastructure.
Many developed countries are pouring in investments into Indonesia in possibly making it into another Singapore. Thus the close vicinity to the other markets such as Singapore, Hong Kong, Malaysia, etc. will help lure other multinationals into Indonesia. Though the infrastructure as a whole is somewhat weak, it still has plenty of cheap resources, particularly the human resources. For Indonesia to prosper, multinationals need
to remember the importance of giving back to the community by supporting
various government programs as well as taking initiatives for a
The manufacturing possibility in Indonesia is
looking better, now that Indonesia realizes the importance of reaching
parity with other growing East Asian Economies. The improvement of
technology in regards to telecommunication infrastructure is high on Indonesia’s
agenda. While the infrastructure is slowly getting better, businesses
should take advantage of the relatively high literacy rate (85%) of Indonesian
workers. In addition, the wealth of human labor at cheap prices should
spark interest to manufacturing type businesses. Furthermore, the
government of Indonesia is encouraging foreign investors to put money into
the country, and in return, these investors are given tax incentives.
The government is also interested in labor extensive businesses that will
hopefully reduce the unemployment rate in Indonesia.
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Telecommunication
Infrastructure |
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Privatization and Deregulation | |
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Hardware manufacturing | |
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E-Commerce | |
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Software development | |
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IT
Usage
(bymilitary, households and Labor) |
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IT Geographics | |
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IT Financing | |
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IT Labor Market | |
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Government Policies | |
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Legal Environment | |
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Analysis : IT Strengths/ and Weaknesses | |
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Analysis :Impacts on the Business | |
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Sources and Links | |
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About the authors |
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AmericanUniversity |
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