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Business analysis of Indonesia

Based on the atteached, brainstorm the following:

a)What political factors explain Indonesia's poor economic performance? What economic factors? Are these two related?

b)Why do you think foreign firms have been exiting Indonesia in recent years? What are the implications for the country? What is required to reverse this trend?

c)Why is corruption so endemic in Indonesia? What are its consequences?

d)What are the risks facing foreign firms that do business in Indonesia? What is required to reduce these risks?


Solution Preview

a. corruption, bribery, red tape, slow change for laws; infrastructure, world economy, loss of production of oil. Yes, poor laws and the red tape and its accompanying bribery and other issues would slow the progress of infrastructure an important part of attracting business. The loss of oil production will lead to less tax money and ever worsening infrastructure which panics an already corrupt government and therefore means less money to attract new business. Though not noted in article, the country has problems with terror organizations within the country and it cannot seem to control them.

b. Poor infrastructure means harder to ...

Solution Summary

A discussion of the business prospects and climate of Indonesia.