Indonesia in 2004
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Case Code: ECOA131 Case Length: 22 Pages Period: - Pub Date: 2005 Teaching Note: Not Available |
Price: Rs.500 Organization : - Industry : - Countries : Indonesia Themes: - |
Abstract Case Intro 1 Excerpts
Excerpts
About Indonesia
In 2004, with about 220 million people, 85% of whom were Muslim, Indonesia was the largest Muslim country in the world, and the fourth most populous of any faith. It was one of the few countries in the world where democracy co-existed with Islam...
Background Note
The first two centuries of Dutch colonization of Indonesia were administered by the Dutch East India Company. After taking over from the Dutch East India Company in 1800, the Dutch government ran the Netherlands East Indies directly. Local rulers were replaced or integrated into the colonial bureaucracy...
The Economy: A Historical Perspective
Agriculture (including animal husbandry, fishing and forestry) had historically been the dominant activity in Indonesia. The country was also rich in mineral resources. The manufacturing sector began to expand rapidly in the mid-1980s...
The Indonesian Economy in 2004
In 2004, after being elected to power, Yudhoyono raised new expectations. Compared to the darkest days of the Asian crisis, things looked better. The Rupiah, had appreciated dramatically, partly due to capital inflows attracted by the government's asset sales...
Foreign Trade
Till the late 1920s, the Indonesian economy had been dependent on exports of raw materials and agricultural goods. Nearly all manufactured goods were imported. Trade was primarily handled by Dutch firms...
Business Environment
According to most accounts, Indonesia, was in many respects a difficult place to do business.
As one writer mentioned :
"On arrival in Jakarta, desultory passport inspectors may keep him (a visitor) waiting in line for an hour. His taxi driver will refuse to start the meter, demanding an extortionate fare instead. Congested roads will drag out his trip into town. As he sits in stationary traffic, he begins to wonder whether one of the vehicles around him might contain the car bomb that anti-western terrorists are said to have stashed away somewhere in Jakarta."...
Politics, Society & Religion
Indonesia's diversity amazed foreigners. Indonesians spoke about 500 different languages. They practised five religions officially, and many more on the side, with innumerable sub-sects and variations. There were racial differences between lighter-skinned Austronesians and darker Melanesians, and between indigenous groups and immigrants from China, India and Arabia...
The Road Ahead
The new government of Yudhoyono faced various challenges as it got down to the task of governing the country. Interest rates had just started to rise from record lows. In a gesture that pandered to nationalist sentiments, Megawati had declined further assistance from the International Monetary Fund in 2003...
Exhibits
Exhibit 1: Indonesia
Exhibit 2: Indonesia at a Glance
Exhibit 3: Economic Indicators
Exhibit 4: Comparative Economic Indicators, 2004
Exhibit 5: GDP per Person in 2002
Exhibit 6: Consumer Subsidies, Rupiah, Trn, 2004
Exhibit 7: Labor Productivity and Real Wage Growth, % Change on Previous Year
Exhibit 8: Official Unemployment, % of Labour Force
Exhibit 9: Infrastructure Spending (% of GDP)
Exhibit 10: Net Foreign Direct Investment
Exhibit 11: Exports & Imports
Exhibit 12: Trade Balance (Goods & Services), National Income Products Account
Exhibit 13: US Dollar to Indonesian Rupiah Exchange Rate
Exhibit 14: Exchange Rates
Exhibit 15: Deaths from Christian-Muslim Conflict
Exhibit 16: Indonesia's Parliamentary Seats, Tower House, 2004
Exhibit 17: Change in Political Parties' Share of the Popular Vote
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