Social Factors Of Indonesia Essay

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).

Indonesia is fourth country after with high population of elderly. It is estimated the population of elderly will increase

Education is seen as the gateway to economic well being, making the quality of the education provided a more important issue in need of attention in both developed and developing countries. Economic growth and poverty reduction cannot prevail without an educated and skilled workforce. In developing countries, one additional year of education adds approximately 10 percent to a person’s earnings (A Global Impact on Learning 2011). Thus it is imperative that developing countries invest in the education of its people so that its entire country can prosper.

Kebangkitan Nasional Indonesia, or the “Indonesian National Awakening” began in the early Twentieth Century. The success of Indonesia’s budding nationalism belongs to the ability to use existing the institutions, urbanization and transportation around Java and Sumatra, and the “otherness” of colonization. Initially groups such as Sarekat Islam were founded to fulfill community needs, but shortly morphed into a way for the “natives” of the Dutch East Indies to unite and organize. Later, students at STOVIA (School for the Training of Indonesian Doctors) began to form political and philosophical organizations such as Boedi Oetomo, which advocated for independence of the East Indies. Leo Suryadinata, as well as countless other Indonesian scholars, asserted that these were essential for the formation of Nationalism in modern Indonesia. Such groups emphasized a united Indonesia, rather than focusing on the numerous ethnicities that belong to the archipelago. This sense of budding nationalism was encouraged during Japanese occupation. Thus, following the end of the World War II and the return of the East Indies to the Dutch, Indonesia began a violent, five-year long war for independence. The hardships of war echoed the shared sense of identity and community amongst Indonesians and continues to be a crucial component of Indonesian nationalism today.

More than 21 million people in Indonesia died because of starvation, more than 1 million children can’t receive education in schools cause economy factors, and more than 28 million people is struggling against poverty.

Too much focus on commodities will not help to further grow their economy as commodity prices are generally lower than manufactured goods, and are volatile, very much determined by world market forces. When prices drop, it will affect Indonesia’s export income greatly. Therefore, a shift in focus will help to make the economy more stable.

RELATION(S) OF FIVE MAJOR FACTORS IN INFLUENCING POLITICAL SYSTEM AND TO THE PEOPLE IN INDONESIA

Over the past few years, middle income segment in Indonesia is growing rapidly and has a direct impact to Indonesian economy. According to Euromonitor middle income segment is around 52.4% of the total population in 2010 which is predicted to get wider considering the salary increase every year. One industry that impacted directly by the increase of middle income segment is fashion retail segment, in specific department store. The fashion retail in Indonesia is dominated by department stores, which is around 98% by sales.

Ever since Indonesia has opened its economy to global forces in the mid-1980’s, the country has experienced the growth of trade and investment and the increased participation of transnational corporations in the economy. Reforming the economy has been necessary so that Indonesia can keep pace with other economies in the South-East Asian region and avoid relying too heavily on commodity exports, whose value on global markets tends to be volatile.

This study will allow us to understand how local consumers make decisions to buy. Based on those facts, we will be able to have an effective strategy and avoid mistakes related to cultural differences.

Indonesia's GDP is $1.125 trillion per year (PPP), which places it as the 15th-largest economy among nations, behind Canada and ahead of Turkey (CIA World Factbook, 2012). Indonesia's GDP is growing steadily a strong rate. World Bank figures have the country's GDP growing at 6.46% in 2011, 6.2% in 2010 and only dipping below 5% growth once in the past five years, when GDP grew at 4.63% in 2009. Indonesia outperformed most of its regional peers (save China) in posting growth in 2009. There is a caveat to this growth in that the GDP per capita is growing at a slower pace than the GDP is growing. Indonesia's population is growing rapidly, and the country is becoming younger. In the long run, this will spur further growth, but in the short run the young population is actually constraining growth because so many Indonesians are still below working age. This comparison is relevant because population growth is a key driver of GDP growth, and looking at the GDP per capita growth helps to understand what component of GDP growth is driven by population increases as opposed to organic expansion.

Indonesia lives off of their international trade. It has a very high impact on their country and some people will do whatever they need to do in order to keep business. This is where illegal trading comes into effect. Wild, exotic animals are illegally captured, sold and shipped every day in Indonesia. They have access so easily through their rainforest and because they are so close to ports they can be transferred and traded (BOSA, 2008). China and the United States make up over 20% of Indonesia’s trading and do over 140 billion dollars a year in exports (OEC, 2017). When comparing Indonesia and the United States most say the two

Indonesia’ economy is still suffering from an infrastructure gap. According to Diop (2014), underinvestment in infrastructure, mainly in transportation has left the country with a

Jakarta is the capital city of Indonesia, one of the world’s most densely developed megacities, and home to more than 10 million inhabitants (The World Bank 2015). The Greater Jakarta Metropolitan Region (JMR) is officially known as Jabodetabek, a name formed by combining the initial syllables of 6 independent municipalities: Jakarta, Bogor, Depok, Tangerang and Bekasi. This huge urban agglomeration with more than 27 million population, or 10 percent of the population of Indonesia, has been the most attractive area in Indonesia for both domestic and direct foreign investments —especially in the manufacturing sectors— which can potentially

The inflow of Foreign Direct Investment to Indonesia is very dynamic featured with upward and downward trend interchangeably. Since 1981 FDI ratio to Indonesian GDP is relatively low range from 0 – 3% of Indonesian GDP. But the number of FDI could be regarded as the signal of Indonesian economic recovery and investor confidence of the country. Historically, Indonesian FDI rose significantly in second phase of Soeharto era from 1981 to 1996 but then drastically down as the effect of Asia Financial Crisis and internal political instability in 1996 to 2000. Indonesia’s start to regain investor confidence after the successful democratization process in 2000 and peaked the performance in 2014 at the presidency of Yudhoyono. But in