The World Bank's Summary of Indonesia's Business Reforms

Doing business overseas takes time and patience. It requires new relationships to be established; therefore, it is important to have an established business model that works according to plan. The most favorable markets are politically stable developed and developing nations with free market systems, low inflation, and low private sector dept. The less desirable markets are politically unstable developing nations with mixed or command economies or developing nations where speculative financial bubbles have led to excess borrowing.

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

Principles and strategies that applies for a small, medium and large organization is what Team A had to discuss this week for each of our chosen business to be compliant with state and country laws while starting their businesses or expanding to a new state or country. We collectively analyzed three businesses that were exploring different possibilities for expanding operation in Texas, Arizona and India, however, none of us chose to write about the expansion to India project in our individual papers. Each business will decide the strategic plan that is appropriate for their business however; it was each

Australian living standards are higher than Indonesia’s, this is a result of Australia maintaining higher economic performance through superior economic indicators. Australia’s economic indicators reflect a mature and relatively stable economic growth with a population 1/10th of Indonesia’s, in comparison, Indonesia’s economy reflects a growing developing economy. Indonesia’s economic trends are improving at a rapid rate and if this trend continues, Indonesia could have in the mid to long term superior economic growth and thus higher living standards than Australia. Particularly as Indonesia has a young population to fuel this.

Australian-Indonesian relations are the foreign relations between the two countries, whether economically, politically, legally or socially. Australian-Indonesian relations involve an interaction in foreign policies between the two nations (Wolfsohn, 1951, p. 68). As long as Indonesia is Australia 's closest and largest neighbor, they are bound to have great international relations. These relations began as early as the 17th century and had only become enhanced with time (Daly, 2003, p. 397). The relationship has been defined by a conjoint growth trade of up to $14 between the years 2011-2012 which reports an increase from the previous economic year (Mark, 2012, p.402). These countries are members of various trade deals such as the ASEAN Regional Forum in addition to having close ties with education, defense, and leadership. Australia 's relationship with Indonesia is crucial, and lack of such could severely bruise the economy, and hence they need to keep united by ensuring the use of widespread media with beneficial input. Australia interacts with Indonesia in a way such as sporting activity, tourism, education, economic policies, youth exchange programs, cultures and above all their diplomacy (Okamoto, 2010, p.241).

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).

Factors such as the costs, social situation understanding the culture, competition, labor force, rules and regulations, targeted audience, availability of labor force etc needs to be considered in business expansion plans. Company has already factory setup in Lebanon and all products are exported from Lebanon. Problem mainly lies in the region instability to do business operations at times cause

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.

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.

World Justice Project (2015) then raised three contributing factors for the shortcoming of law in Indonesia, namely ‘defective investigations, an ineffective correctional system, and violations to due process of law’. The World Economic Forum (WEF)'s Global Competitiveness Report 2016-2017 stated that the most troublesome factors for conducting business in Indonesia were corruption and inefficiency in the bureaucracy of Indonesia.

There are always business risk when it comes to expanding a company, especially from an international standpoint. There are many strategic risk that needs to be evaluated in order to expand the company successfully. Examining the possible risk of foreign currency exposure, basic functions of international banking/financial market, support of long term financing of operations, and assessment of opportunities that can be implemented within the company. There are risk on three dimensions of international finance, economic trends of the country, impact of globalization and monetary system. All of these situations will be discussed in this paper.

Quality of education and training with the program “Smart Indonesia”; as well as an increase in welfare of society with the program “Indonesia Work” and “Indonesia Prosperous” by encouraging land reform and land ownership covering 9 hectares, of Kampung House program runs or cheap subsidised flats as well as social security for the people in the year 2019, 6th Nawa Cita is to improve people’s productivity and

There are many companies who are still skirting lax laws and regulations in Indonesia and finding the cheapest and easiest way to do business, which often having the activity of deforestation. (Indonesia forests still dwindle despite reforms,

* Many growing markets like Indonesia are following the example set by markets such as India, where companies have to make a minimum societal investment. This template is also being implemented in European and South American countries. Hence, companies with growing international operations have to be aware of these policies.

Measuring a potential business venture has many aspects which the international manager must be aware of in order to convey the correct information back to the decision makers. Being ignorant to any of the aspects can lead to a false representation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financial aspects must be looked at in order to yield the best possible picture of the market a company wishes to enter. Concentration should be placed on gathering reliable facts