Globalization in the Fast Food Industry in Indonesia

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For this essay, I have chosen the fast food industry as the industry I will look at and Indonesia as the country. Indonesia has a population of 232 million people, with the capital city Jakarta alone has 10 million people, more than twice the population of the whole of New Zealand. So Indonesia represents a huge market for industries to delve into, in 2011 Indonesia recorded US $18 billion in Foreign Domestic Investments and ranked 18th for biggest FDI inflow. (, 2013) And on a recent 2012 survey, Indonesia is ranked 4th as a major destination for FDI for the period of 2012 – 2014. (United Nations Conference On Trade And Development [UNCTAD] World Investment Prospect Survey 2012-2014, 2012) Considering that Indonesia…show more content…
McDonald’s and KFC both made rice available in their menu, with the McDonalds’ rice packaged like a cheeseburger and was named McRice. Rice is a staple for Indonesians and most eat rice for breakfast, lunch and dinner, so it is a perfect way to appeal to Indonesians. McDonalds also serves rice porridge on their breakfast menu along with the original breakfast menu, such as hot cakes, scrambled eggs, and hash browns. Something that is unique to Indonesian’s McDonalds is the fried chicken. McDonalds in Indonesia all have fried chicken, similar to that of KFC, available on their menu and are actually what Indonesians know McDonalds for, for their chicken rather than the original cheeseburgers and Big Macs. A move that has proved to be their main success, as it helps them to appeal to the Indonesians preference of fried food and as well as competing with other fried chicken joints, like KFC, Popeye’s and a locally found restaurant called California Fried Chicken and Texas Chicken. The second main attribute that all companies in the food industry need to deal with utmost care is the demographics. Indonesia is the largest Muslim populated country in the world, with 87% of its population being Muslim. Muslims are strict on their diet and are not allowed some foods like pork, so in every packaging of a fast food item you will see
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