Indonesia in 2004

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Case Details:

Case Code : ECOA131
Case Length : 22 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : Indonesia
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

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."...

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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...


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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