INTRODUCTION
KHS GmbH is one of the leading producers of filling and packaging system in Germany. The company is based in Dortmund, Germany. The company also has production facilities in 5 countries outside Germany situated in Brazil, The United States, Mexico, India and China. KHS GmbH’s also has their branches across 83 countries around the world. The company has revenue of around 1,077 Million Euros as estimated in the year 2014 and has more than 4,500 employees in the company worldwide. The production cost in Germany is very high that the profit margin is too low. Moving the production to other foreign countries where the labour cost is lower compared to that of Germany could sort out the problem according to the management. Indonesia is an option that the company management is looking forward to start the production. The strategic location in relation to giant economies of China, India and Australia, low labour cost and access via sea route are the main advantages that Indonesia has. But, being a complex country, there are certain risks that the company should keep an eye on before investing in Indonesia.
1.INDONESIAN ECONOMY
Indonesian Economy has seen drastic changes in the last two decades. Currently Indonesia is South East Asia’s largest economy and one of the emerging economies in the world. Indonesia is ranked the 18th largest economy in the world. Looking at the history, the Indonesian economy was deteriorating and was in crisis in the
As you can see in figure 2, the Indonesian GDP grew 144% from 2006, in monetary value this equates to $364 Billion to
Kelly Services is a company that provides a wide range of experienced work force to temporarily staff developing companies or assist companies that are experiencing low manning. Kelly Services’ employees are experienced and well educated. We have a wide range of experienced engineers, mechanics, pharmacists, and very motivated labor workers. We believe that Germany would be the best country to focus our attention on because of the skill we have to offer. Germany is responsible for $1.5 trillion worth the exports globally. The $1.5 trillion includes vehicles, machines (engines and pumps), electrical equipment, pharmaceuticals, medical equipment, plastics, aircraft, aircraft parts, oil, iron, steel, and organic chemicals. (Workman, 2015) Because of Germany’s wide range of exports globally, there are always companies being built to keep up with the demand. Germany’s scientists are also working hard to invent new machines to replace labor workers in order to cut down on the costs for running their industries.
StaffSoultions Inc. Inc. was formed 31 October 2003, by the President Donald Edwards in the City of Alexandria, Virginia. The goal of StaffSoultions Inc. was to raise revenue through Government Contracting. Our Mission Statement is as follows: StaffSoultions Inc. mission is to use our extensive personal knowledge to deliver tangible business results, enabling our clients in industry and government to profit from the advanced use of technology. We strive to build long-term client relationships based on mutual trust and respect.
Indonesia had a GDP of 868.3 billion international dollars (GDP of Indonesia, 2016) and a GDP per capita of 3,475.25 international dollars in 2013 (GDP per capita, Indonesia, 2016). The GDP is primarily used to indicate an economies performance, it is measured by Y = C + I + E + G, where Y = GDP, C = Consumer Spending, I = Investment made by industry, E = Excess of Exports over Imports, G = Government Spending (Birch T, 2016). The GDP per capita is calculated by the GDP of a country, divided by the population of a country. The GDP and GDP per capita are very vital indicators of an economies progress. A rise in GDP shows that there an increase of value in an economy or there is a higher income or rise in expenditure which implies that there is a rise in the standard of living of the citizens and due to rise in income there will be a higher spending on various goods and services like healthcare, education, etc. Therefore as Australia’s GDP is higher than Indonesia’s there is an indication of higher living
Schwartz and Sons LLC is a painting company that is located in Ham Lake, Minnesota. Their services include fire, water, and storm restoration, drywall repair, drywall installation, drywall taping, drywall texturing, green / low VOC coatings, and more. Schwartz and Sons continues to meet the demands of all budget-conscious homeowners who are looking to improve their homes at a price they can afford.
Thorntons is the largest manufacturer and retailer of specialist chocolates in the United Kingdom. The organization has been following a strategy of in-house manufacture while retailing through the
Economic system is a system of beliefs (concerning work, property and wealth), activities (extractions, production and distribution), organizations(business firms, labour unions), and relationships(ownership, management) that provide the goods and services consumed by the members of a society.(Cullen 2011, p.81) The economic system is unique in that Indonesia has a market-based economy in which the government plays a significant role. There are 141 state-owned enterprises, and the government administers prices on several basic goods, including fuel, rice, and electricity. Growth rebounded in 2010 to 6.1% and is forecast to have reached 6.2%-6.5% in 2011. Poverty and unemployment have also declined despite the global financial crisis, with the poverty rate falling to 12,5% (March 2011) from 13.3% a year earlier and the unemployment rate falling to 6.6% (February 2011) from 6.8% a year earlier. In December 2011, Fitch Ratings upgraded Indonesia’s sovereign debt rating to investment grade. . There are many potential infrastructure projects in multiple sectors including hydroelectric and solar power, palm oil, new roads including toll motorways, mining, expansion of broadband internet, and
The USHEALTH group is a health insurance company based in Texas, US. It has dedicated its services on the basis of their motto of helping others every day. With almost 50 years of experience, it is regarded as one of the most trusted health insurance in the US.
Indonesia is the sixteenth largest economy, the largest economy in the South-east Asian economic region with the world's fourth largest population (263 million in 2017). It is an emerging economy that has increased its international integration, trade liberalisation and diverted from policies of import substitution towards export-led development. Indonesia is a member of the Group of 20 (G20) major economies and has been an active founding member of the World Trade Organisation (WTO). The impact of globalisation has benefited Indonesia as quality of life indicators and economic developments have improved but it also presents the challenge of improving regulations, building more competitive industries, increasing investment into education and infrastructure to remain competitive. Consequently, Indonesia has introduced numerous strategies to promote economic growth and development.
A3sun Group was established in 2007 and is one of the UK’s leading energy services and engineering businesses. It operates in the oil and gas onshore and offshore wind sectors and is a recognized supplier of control panels for offshore oil and gas subsea and platform applications, whilst in the offshore wind sector it installs, inspects and maintains wind turbines. 3Sun has grown steadily and significantly and consists of five separate divisions, these include:
For us the dream is individually defined. It may be that moment of escape on
Worst financial crisis hit Indonesia's economy in 1997 to 1998. It caused instability in currency values, resulting Indonesian Rupiah depreciated to lowest level at 82.9% and low-level of competitiveness. This crisis had me to devote my interest to take International Economics as my education at the Faculty of Economics and Business of University of Indonesia. At my university time, I identified that exchange rate variability had a negative effect on trade and intermediate goods was one of key solutions to boost international trade.
Ryan is a construction company that specializes in integrated project delivery, building information modeling (BIM), Lean construction practices and sustainable design for office, retail, industrial, public sector, alternative energy (biomass and gasification,[2] wind, solar), health care, higher education, hospitality, mission critical, multi-family and senior housing and mixed-use projects. With in-house construction, design, development, capital markets and real estate management, Ryan uses integrated project delivery (IPD) as a preferred method for and delivering design and construction projects and organizing project teams.
“Since the economic crisis started in 1997, an increasing number of people in Indonesia are thrown into the harsh reality of joblessness. More than 40 million people are without a reliable income from employment in Indonesia today. Rates of criminality have increased, not least as a consequence of weakened state and police power since the fall of Soeharto'sauthoritarian regime in 1998.” (Kristiansen, 2003)
HILL, H. (2007). THE INDONESIAN ECONOMY: GROWTH, CRISIS AND RECOVERY. Singapore Econ. Rev., 52(02), pp.137-166.