Indonesia's Business Environment

This assignment analyzes Indonesia's business environment from both a macro and micro perspective. It highlights the country's potential as an attractive investment destination due to its economic growth, large consumer market, and abundant natural resources. The analysis also acknowledges challenges such as bureaucracy, corruption, and infrastructure limitations, while emphasizing ongoing government efforts to address these issues. Specific examples are provided, such as the increasing export of New Zealand juice to Indonesia, illustrating the practical implications of this business environment.

Running head: INTERNATIONAL BUSINESS
International business
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NTERNATIONAL BUSINESS
Environmental analysis of Indonesia:
The analysis of environment of Indonesia at micro and macro is to provide investors
with a brief overview of core fundamentals. This would assist in differentiating country for
providing certain practicalities for the investment and business ventures such as exporting of
NZ natural juice that is a small company situated in Hawke’s Bay Napier.
Indonesia is predicted to be the sixth largest economy in the world. Economy of
Indonesia is on rise and is regarded as major destination for foreign direct investment.
Distinct characteristics of country are coupled with self reliance, political stability and robust
economic growth. In all the sectors, investment opportunities are ripe and a window of
opportunity is represented for investors to participate in the market exhibiting strong
fundamentals of the worlds growing region. Natural resources of country are diverse and
among markets they are strategically positioned from which there is a high demand. Highly
sought attributes is yielded by its unique topography. One of the alluring attributes for
investors is the growing size of domestic consumer market of Indonesia. Consumer spending
is fuelled by sustainable economic growth and relatively stable inflation and its young and
working population (Forsgren & Johanson, 2014).
The export of juices and non alcoholic beverages to Indonesia has increased on a
significant scale since year 2013. Value of export stood at $ US 8.1 million in year 2013 as
compared to $ US 15 million in year 2016 (Setiawa & Barrett, 2016). It is indicative of the
fact that market that market of Indonesia is the best prospect industry for exporting juice.
Indonesia is in enviable position of being able to reap the benefits of energy resources and its
highly fertile soil and climate suits the cultivation of agricultural commodities that are of high
value. There is a scope for increased output due vast availability of land. Among emerging
market, natural resources of Indonesia make it a unique country for providing food and long-
term energy for its burgeoning population (Utami et al., 2017).

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Political system continues to be in a work in progress and a series of coordinated
region would be yield by the process of political maturation that will compliment their
commercial strength and particular attributes. It is perceived that in coming decades, political
system of Indonesia will continue to strengthen and investors would have confidence in
stability of country. Vast population of country is set to grow to 288 million by year 2050 that
will help in serving consumer market and a highly skilled productive capacity. All these
factors would help New Zealand natural juice in exploring their juice business.
However, some challenges are faced by country in securing business environment for
sustainable economic growth and investor’s environment.
Some of the issues that can be hurdle for investors are excessive bureaucracy and corruption
issues. Furthermore, growth in gross domestic product of Indonesia is restrained by poor
infrastructure and unqualified human resources (Wild et al., 2014). However, the aforesaid
obstacles are being addressed by some steady steps taken by country’s democracy.

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References list:
Forsgren, M., & Johanson, J. (2014). Managing networks in international business.
Routledge.
Setiawan, W., & Barrett, P. S. (2016). The built environment element of economic development in
post conflict response in Indonesia. Procedia-Social and Behavioral Sciences, 234, 478-487.
Utami, C. W., Bernardus, D., & Sintha, G. (2017). The Pattern Analysis of Family Business
Succession: A Study on Medium Scale Family Business in Indonesia. European
Research Studies, 20(2), 461.
Verbeke, A. (2013). International business strategy. Cambridge University Press.
Wild, J. J., Wild, K. L., & Han, J. C. (2014). International business. Pearson Education
Limited.