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. (data.worldbank.org, 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 only celebrated independence in 1945, this statistic shows how globalization can grow so rapidly.
One of the benefits of globalization is the opportunity for business expansion and it has become the norm for big companies from developed countries, such as the United States, to expand their market to other less developed countries where opportunities are plentiful.

Although Indonesia is considered a third world country, you can easily go to a mall and eat an American hamburger or Italian pasta for example, there is hardly anything you can’t find. This would not be possible several decades ago, before the massive influx of globalization and foreign investment. I’ve actually met people from less developed country that has complained on how hard it is to find certain things in New Zealand, which considered to be a first world country.

This is also the case for the fast food industry in Indonesia, it has become amazingly easy for local Indonesian customers to find, purchase and consume internationally known fast foods. Such as McDonalds, Burger King, KFC, Krispy Kreme. These brands have become incorporated in the Indonesian people’s lifestyle, even though it is completely alien compared to the Indonesian culture, food,...
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