Analysis of Political, Economic, Legal and Technological Risks in Indonesia
Analysis of Political, Economic, Legal and Technological Risks in Indonesia
By Yohanes Randy Anggoro
Student ID: 1004536
Instructor : Mr. Bala Subramaniam N. Module Name : International Trade and Management Module Code : ERCBA-209 Word Counts : 2106 Due Date : 7 November 2012
Content Page
Introduction………………………………………………………………………………………………2
Brief Introduction to Indonesia……………………………………………………………………….3
Political Risk……………………………………………………………………………………………..3
Economic Risk…………………………………………………………………………………………..4
Legal Risk………………………………………………………………………………………………...6
Technological Risk……………………………………………………………………………………...6
Conclusion…………………………………………………………………………………………….....7
Reference List…………………………………………………………………………………………...8
Introduction Doing or expanding business in Asia nowadays has become a popular trend from companies around the world, many big firms based on Europe and United States of America recently has opened a branch in Asia in order to reach the Asia Market. The main attraction of Asia is the number of population, with approximately 4 million people spread around 5 regions, consist of Northern Asia, Western Asia, South Central Asia, South East Asia, and East Asia (OneWorldNationsOnline, 2012), it is apparent that Asia has become a large growing market that attracts companies around the world. Moreover, other than the large growing market potential it offers, there are other benefits that a firm can get by expanding business in Asia. First of all the labor cost in some less developed Asia Countries, such as Indonesia, Vietnam, Thailand, is relatively lower than labor cost in Western Countries, for example, England and United States of America. Secondly, the land cost in Asia, Indonesia in particular is relatively much cheaper than in Western countries. However, despite the benefits that have been mentioned above, there are some risks that need to be known by a firm before deciding to expand business to Asia, Indonesia in particular. The
By Yohanes Randy Anggoro
Student ID: 1004536
Instructor : Mr. Bala Subramaniam N. Module Name : International Trade and Management Module Code : ERCBA-209 Word Counts : 2106 Due Date : 7 November 2012
Content Page
Introduction………………………………………………………………………………………………2
Brief Introduction to Indonesia……………………………………………………………………….3
Political Risk……………………………………………………………………………………………..3
Economic Risk…………………………………………………………………………………………..4
Legal Risk………………………………………………………………………………………………...6
Technological Risk……………………………………………………………………………………...6
Conclusion…………………………………………………………………………………………….....7
Reference List…………………………………………………………………………………………...8
Introduction Doing or expanding business in Asia nowadays has become a popular trend from companies around the world, many big firms based on Europe and United States of America recently has opened a branch in Asia in order to reach the Asia Market. The main attraction of Asia is the number of population, with approximately 4 million people spread around 5 regions, consist of Northern Asia, Western Asia, South Central Asia, South East Asia, and East Asia (OneWorldNationsOnline, 2012), it is apparent that Asia has become a large growing market that attracts companies around the world. Moreover, other than the large growing market potential it offers, there are other benefits that a firm can get by expanding business in Asia. First of all the labor cost in some less developed Asia Countries, such as Indonesia, Vietnam, Thailand, is relatively lower than labor cost in Western Countries, for example, England and United States of America. Secondly, the land cost in Asia, Indonesia in particular is relatively much cheaper than in Western countries. However, despite the benefits that have been mentioned above, there are some risks that need to be known by a firm before deciding to expand business to Asia, Indonesia in particular. The