Doing Business in Indonesia

4. Should Lincoln go ahead with its investment in Indonesia? If so, what should be its entry strategy with respect to

With the permit, you must submit the application fee, a sketch showing the location and placement

Indonesia is a rich country with its resources. Not only oil and gas, but Indonesia also had been a producer of mining and agricultural products such as rubber, tin, tea, coffee, spices and timber. In 2002, timber is one of the key export for “non-migas” (non oil and gas) commodities to provide foreign trades.

Indonesia is now the 15th largest economy on the planet with a global output of just under 1.5% but is expected to rise in the coming years. Manufacturing is the largest single component of Indonesia’s economy with its main exports including crude petroleum and natural gas as well as rubber, coffee, cocoa and palm oil while Australia mostly benefits from exporting mineral fuels, gems, precious metals and meat. Indonesia received $187.3 billion USD from exports in 2012 ranking it 27th in profit from global exports but Australia placed 22nd and profited a total of $257.9 billion USD from its exports leaving Indonesia in the dust. Although Indonesia has showed significant growth recently their quality of life is still worse than Australia’s due to a lower Gross Domestic Product or GDP. GDP is the total value of goods produced and services provided within a country in the duration of a year and determines the strength of a countries currency.

In order to successfully introduce a product into a foreign market it is important to know the culture of the country you plan to do business in. In order to introduce mobile handsets into a market like Venezuela, the supplier must be well acclimated with the purchasing habits, tastes, and willingness to purchase the product that is being sold. Understanding these things starts with building a knowledge base about the major aspects of the culture and your target consumer. With this being said I am providing a brief overview of the country of Venezuela.

According to AAFC (Agriculture and Agri-Food Canada, 2010) due to its extensive natural resources and geographical location, in the way of several of the world’s most important trading routes, Indonesia represents the Southeast Asia’s largest economy. On a global perspective, Indonesia is the fourth most populated country and has the largest Muslim population, besides being the world’s largest archipelago, with around 17,000 islands. The country’s GDP (Gross Domestic Product) is also showing considerable and stable growth throughout the years and unemployment rates dropped considerably (AAFC, 2011).

Not sure where you are in the process; however, if you have the building permits already, please send them as well. If not, please send when obtain.

State Capital Group 1747 Pennsylvania Avenue, N.W. Suite 1200 Washington, D.C. 20006 (202) 659-6601 PHONE (202) 659-6641 FAX info@statecapitalgroup.org www.statecapitalgroup.org

Construction method and its various stages of construction help to identify key construction process involved in various construction methods. During the construction of residential houses various inspections and certification are required in order to ensure the house is constructed to required standards as specified by building regulations. Independent building certifiers could carry out these inspections. Some of the key functions of building certifier are (Department of Local Government and Planning 2011):

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

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.

Indonesia is the largest economy in South East Asia, primary industry of industry (47%), agriculture (15%) and a service industry that makes up nearly 40% of the GDP. More than 1,000 islands totalling almost 2,000,000sq/km make up the largest archipelago in the world. In 2012 the labour force stood at 120 million, 16 times the population of NSW. So what we have is a top 20 economy with a huge workforce and natural resources worth 10s of billions a year.

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.

The company I choice to do a marketing strategy on was McDonalds, “Ba Ba Ba Ba Ba I’m Lovin’ it”. I choice McDonalds because it is one of the most universal and internationally known companies that will always and forever be known for its beautiful golden arches and Ronald McDonald characters. Of course, I could have gone with Kentucky Fried Chicken or even Ikea but the thought of not talking about one of the happiest places on earth, and I am not referring to Disney World, would be a disservice to our American culture. McDonalds has dominantly globalized and franchised around the world and gives new meaning to what marketing really is about. It all comes down to the elements of the marketing

Since 1965, the president of Indonesia continued to provide continuity and stability. However, in order to define an effective and complex growth plan, a company wishing to be successful needed the president’s support to succeed in the plan.