Preview

Indonesian Textile Industry

Powerful Essays
Open Document
Open Document
2345 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Indonesian Textile Industry
Indonesian Textile Industry
Sarju Patel
Jones International University
Leading from a Global Perspective
BC607
Dr. Miro Smriga
June 25, 2014

Indonesian Textile Industry

Executive Summary
Expansion of our textile manufacturing capabilities in emerging markets is a key strategic imperative for our organization. After careful review, it is recommended that we expand textile manufacturing to Indonesia. Investment in Indonesia does pose risks; however, these are outweighed by the numerous benefits that Indonesia offers for foreign direct investment (FDI).
Indonesia offers a growing middle class, a stable political situation, strong domestic demand, as well as conservative macroeconomic policies. It is the world’s fourth most populous nation with approximately 235 million people where roughly half of the population is under the age of 30. In addition, English is the most widely spoken foreign language in Indonesia and it is commonly used in business. The strong economic performance of Indonesia has brought it recognition from global investment banks such as Goldman Sachs and economic analysts including the Economist as one of the world’s most important and dynamic economies. Indonesia is an open-market economy with a free foreign exchange regime. It also has abundant natural resources and commodity products. Indonesia belongs to numerous international organizations including the World Trade Organization (WTO), World Customs Organization (WCO), and the World Intellectual Property Organization (WIPO).
The Indonesian textile industry is expected to remain a major contributor to the economy in the future. One of the leading reasons is that Indonesia has some of the lowest wages among ASEAN member countries and a literacy rate of about 90%. The Indonesian textile industry is one of the oldest and most strategic industries of the country, contributing significantly to national growth. Indonesia’s textile and clothing industry provided approximately


References: 2013 Investment Climate Statement - Indonesia. (2013, January 1). U.S. Department of State. Retrieved June 24, 2014, from http://www.state.gov/e/eb/rls/othr/ics/2013/204660.htm "Acicis – Dspp" Business Culture in Indonesia. (2013, January 1). Doing Business in Indonesia. Retrieved June 24, 2014, from http://www.worldbusinessculture.com/Business-in-Indonesia.html Economy Rankings GBG Indonesia. (2014, January 1). GBG Indonesia | Global Business Guide Indonesia. Retrieved June 24, 2014, from http://www.gbgindonesia.com/ Hill, Cameron (28 March 2014) Indonesia - Cultural Etiquette . (2014, January 1). Indonesia - Cultural Etiquette - e Diplomat. Retrieved June 24, 2014, from http://www.ediplomat.com/np/cultural_etiquette/ce_id.htm Industry Profile Investing in Indonesia. (2014, January 1). . Retrieved June 24, 2014, from http://www4.bkpm.go.id/ Political and Economic Environment U.S. Relations with Indonesia. (2014, February 3). U.S. Department of State. Retrieved June 24, 2014, from http://www.state.gov/r/pa/ei/bgn/2748.htm
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    AVIATION MANAGEMENT
    • 2676 Words
    • 11 Pages

    AVIATION MANAGEMENT

    For Bangladesh, the readymade garment export industry has been the proverbial goose that lays the golden eggs for over fifteen years now. The sector now dominates the modern economy in export earnings, secondary impact and employment generated. The events in 1998 serve to highlight the vulnerability of this industry to both internal and external shocks on the demand and supply side. Given the dominance of the sector in the overall modern economy of Bangladesh, this vulnerability should be a matter of some concern to the policymakers in Bangladesh. Although in gross terms the sector’s contributions to the country’s export earnings is around 74 percent, in net terms the share would be much less partially because the backward linkages in textile have been slow to develop. The dependence on a single sector, no matter how resilient or sturdy that sector is, is a matter of policy concern. We believe the policymakers in Bangladesh should work to reduce this dependence by moving quickly to develop the other export industries using the lessons learned from the success of apparel exports. Support for the apparel sector should not be reduced. In fact, another way to reduce the vulnerability is to diversify the product and the market mix. It is heartening to observe that the knit products are rapidly gaining share in overall garment exports as these products are sold in quota-free markets and reflect the strength of Bangladeshi producers in the fully competitive global apparel markets…

    • 2676 Words
    • 11 Pages
    Better Essays
    Read More
  • Good Essays

    International Business Case Analysis
    • 1747 Words
    • 7 Pages

    International Business Case Analysis

    Many U.S. companies are doing business internationally, but many complex situations can arise. Having an understanding of cultural differences in the workplace becomes important, and to understand these differences, people need to know and understand a culture’s ecological correlations, or in other words, the concepts that describe a culture (Brislin, P. 278). In reading the case “Negotiations – BWA Discovers the Indonesian Way” in Understanding and Managing Diversity, many cultural issues had come into play with the negotiations between the United States and Indonesian firm.…

    • 1747 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    3 Cultures Research Assignment
    • 749 Words
    • 3 Pages

    3 Cultures Research Assignment

    As requested, here is the research assignment describing the culture of Mexico, Japan, and Kenya. This assignment will help guide you in understanding the basic communication styles, business etiquettes, and conflict management styles within their corresponding countries.…

    • 749 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Lean Agile Supply Chain Case
    • 4112 Words
    • 12 Pages

    Lean Agile Supply Chain Case

    Textiles and apparel is a major sector for both the industrialised and the lesser developed…

    • 4112 Words
    • 12 Pages
    Powerful Essays
    Read More
  • Best Essays

    Economic Overview of Indonesia
    • 3804 Words
    • 16 Pages

    Economic Overview of Indonesia

    This paper examines the economic environment of doing business in Indonesia. It takes into account several dimensions such as political, legal, economics, social and technology factors. However, economics and political factors are covered in depth as they have a greater impact on establishing advantages and challenges when a firm might decide to set up a business in Indonesia. The results show that not only legal origins have an impact on corporate finance, ownership and structure, but also politics. The poor quality of the judiciary and legal system and the bureaucracy is much more a legacy of the Soeharto government than of the Dutch colonial system (and French civil law). From the analysis of economics trends emerged that from 2002 to 2004, Indonesia’s economic has suffered as a result of a loss of policy credibility, which weakened its currency and caused high level of inflation. In such circumstances, monetary and competition set of policies have been issued to remediate the downward trends. Reductions on tariffs and interest rates decline have contributed to a rapid increase in credit expansion and new competitiveness. This paper also finds that Indonesia offers a great deal of resources such as rubber and mineral resources along with skilled labour. Although an automotive component firm might benefit from those resources, there are few implications such as weak infrastructure and corruption which would constrain foreign investors to discard investments in Indonesia. In conclusion, challenges are higher than potential advantages with regards to the automotive component industry. However, this paper outlines in its conclusion a recommendation in the circumstance whereby foreign investors will not discard investments. In order to overcome potential problems concerned with the excessive red tape and corruption, this paper suggest a joint venture entry mode with a business group such as the Salim Group.…

    • 3804 Words
    • 16 Pages
    Best Essays
    Read More
  • Powerful Essays

    Marketing Plan
    • 5555 Words
    • 23 Pages

    Marketing Plan

    Communicaid. (2009). Doing Business in Indonesia: Indonesian Social and Business Culture. Retrieved May 16, 2013, from http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Indonesia.pdf…

    • 5555 Words
    • 23 Pages
    Powerful Essays
    Read More
  • Better Essays

    South Korean-Busines Etiquette and Cultural Aspects
    • 1313 Words
    • 6 Pages

    South Korean-Busines Etiquette and Cultural Aspects

    “Welcome to South Korea”. This will more than likely be the greeting one hears when arriving in South Korea on a business trip. Knowing as much about the country and its people will be extremely important to your visit. It’s also important to know as much about the language, their customs and culture as humanly possible, but for this paper we will focus on business practices and etiquette. Some of the business topics we need to discuss are where is Korea, Business Meeting Etiquette, Business Dress Attire, Giving and Receiving of Business Cards, Giving and Receiving of Business Gifts, Business Dining and Entertainment, and Business women.…

    • 1313 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    Governance, Transparency and Accountability : Study Chase Indonesia Revenue Sharing Mechanism
    • 5194 Words
    • 21 Pages

    Governance, Transparency and Accountability : Study Chase Indonesia Revenue Sharing Mechanism

    Siregar, R., 2001. Survey of Recent Development. Bulletin of Indonesia Economic Studies, Vol 37, No.3 Desember 2001…

    • 5194 Words
    • 21 Pages
    Powerful Essays
    Read More
  • Better Essays

    Principle of Econ Assignment
    • 3636 Words
    • 15 Pages

    Principle of Econ Assignment

    Indonesia has a market-based economy in which the government plays a significant role. There are 141 state-owned enterprises, and the…

    • 3636 Words
    • 15 Pages
    Better Essays
    Read More
  • Better Essays

    Indorama Venture Case Study
    • 1012 Words
    • 5 Pages

    Indorama Venture Case Study

    It has been growing rapidly and there are signs of newly advanced developments. These signs are shown through the improvement in the economic growth, low government debts and prudent fiscal management these are also attracting financial inflows in foreign direct investment (FDI). During the Asian Financial Crisis the FDI inflows in Indonesia were relatively weak. It has increased after the global financial crisis. The reason for the increase in foreign investment is because of the ample and diverse natural resources, growing population, relatively political stability and low labour costs. Since Labour is cheap in Indonesia, Indorama thus wants to expand it’s plant there as it is expensive in Thailand. Adding to the fact that energy is cheap in Indonesia and they have an abundant coal, Indorama has built their own coal-fired power station to serve the plant therefore it will be less…

    • 1012 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Indonesia economic analysis
    • 3810 Words
    • 16 Pages

    Indonesia economic analysis

    This report will contain an abundance of information regarding the Indonesian economy. More specifically, this report will detail topics such as population, GDP, distribution of wealth, natural resources, principal industries, and several others.…

    • 3810 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Good Essays

    Rodamas Group: Designing Strategies in Erging Economies
    • 1637 Words
    • 7 Pages

    Rodamas Group: Designing Strategies in Erging Economies

    Indonesia
is
a
vast
archipelago
with
a
population
of
around
240
 million,
and
has,
over
the
years,
 experienced
significant
growth.
 Local
partners
were
essential
to
manage
the
appropriate
 connections
in
a
country
that
was
 rapidly
developing
but
which
still
suffered
from
weak
 infrastructure,
law
enforcement,
and
rampant
 corruption,
making
every
aspect
of
operations,
including
obtaining
 permits,
buying
land,
hiring
personnel,
 procuring
inputs
and
distributing
products,
a
challenge.
The
 cultural
diversity
and
geography
for
example,
 with
hundreds
of
languages
and
islands,
made
it
hard
to
distribute
 products
and
effectively
market
them.
 The
low
disposable
income
compared
with
the
large
population
 meant
that
there
were
large
markets
for
 products
that
catered
to
daily
needs,
such
as
food,
clothing,
soap,
 construction
materials
and
other
basic
needs.…

    • 1637 Words
    • 7 Pages
    Good Essays
    Read More
  • Good Essays

    Indonesia's Current Economic Condition
    • 640 Words
    • 3 Pages

    Indonesia's Current Economic Condition

    Indonesia is a developing country, meaning that it still relies on agriculture and mining or primary sector as its basic foundation. However, this primary sector doesn’t offer much job opportunities, especially for those who are “secondary school graduates” that make up most of the labor work force in Indonesia (World Bank Economy Quarterly, December 2011). Not to mention the low wage that this sector gives. This leads to unemployment and poverty.…

    • 640 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Economy Overview
    • 3244 Words
    • 13 Pages

    Economy Overview

    Indonesia is the largest economy in Southeast Asia and is one of the emerging market economies of the world. The country is also a member of G-20 major economies. It has a market economy in which the government plays a significant role by…

    • 3244 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Good Essays

    Indonesian Petroleum Industry
    • 629 Words
    • 3 Pages

    Indonesian Petroleum Industry

    Indonesia has a population of over 230 million people and abundance of natural resources, especially oil and gas. The Indonesia economy is largely aided by its oil and gas sector which contributes 25% of its domestic revenue and besides that also provides a direct employment of more than 30 thousand workers. The upstream oil sector, which is also generally known as the exploration and production (E&P) sector, is one of the most vital sectors in the Indonesia economy.…

    • 629 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics