Kamis, 14 Oktober 2010

Business and market overview on Indonesia

ECONOMY. The Indonesia is a market economy, but the Government plays an important role in the economy of the country, with 160 government-owned enterprises. Indonesia'S GDP per capita ranking fifth after Brunei, Malaysia, Singapore and Thailand. The Asian economic crisis of 1997 negatively impacted the country's economy and businesses and caused the soaring prices of necessity arising in social unrest. Future prospects of the economy of Indonesia are bright with structural economic reforms in place after the Asian economic crisis.

Indonesia'S GDP was $ 258.3 million dollars with a GDP per capita of US $ 1,193 in 2004. Indonesia's real GDP grew at an average of 4.6% annually from 2000 to 2004, driven by domestic consumption accounting for almost three-quarters of Indonesia GDP.Inflation increased from 3.8% in 2000 to 11.9% in 2002 but then declined 6.1% from 2004. GDP per capita increased from US $ 801 in 2000 to US $ 1,193 in 2004 but also increased by 6.1% to 9.9% during the period of unemployment.

The manufacturing sector has contributed 43.7% of Indonesia's GDP in 2004, while the services sector contributed 40.9%.Although nearly 17.7% of the workforce is involved in agriculture, this sector has contributed only 15.4% of GDP of the country during the period. key industries include petroleum and natural gas, textiles, clothing, footwear, mining, cement, chemical fertilizer, plywood, rubber, food and tourism. Main agricultural products include rice, palm oil, rubber, cocoa, peanuts, copra and cloves.

DEMOGRAPHY. approaching 18,000 islands of Indonesia and has the largest population among the countries of Southeast Asia with 217 million people in 2004. Main islands are Java accounting for 55% of the population followed by Sumatra (18%), Kalimatan (5%) and Sulawesi (6%). Other less populated islands include Irian Jaya, Bali, Nusa Tenggara.

The Indonesia is a country of diverse ethnic communities and sub-ethnic with different languages and dialects, cultures and food.The Javanese represent 45% of the population followed by Sundanese (14%) and Madurese (8%) and coastal Malays (8%). Chinese who migrated to Indonesia during the Dutch colonial period account for almost 5% of the population. Islam is the predominant religion followed by Christianity and minority religions include Buddhism and Hinduism. the national language is Bahasa Indonesia (similar to Malay used in Malaysia, Singapore and Brunei). English is not widely used but many businesses and Government officials occupying foreign companies and foreigners are fluent in the language.

More than half the population lives in rural areas, but the percentage of urban population is increasing from 14.2% in 1995 to 17.7% by 2004. major cities include Jakarta with a population of 10 million, followed by Semarang, Surabaya, Bandung, Yogyakarta, Surakarta, Medan and Padang.
Nearly 25% of the population lives below the poverty line, while another 60% from the lower income group. The remaining 10% belong to average income and 5% of the highest income group. Although Indonesia has a relatively small consumer central to high-income, this equates to approximately 33 million consumers.This is more of Singapore 4.3 million population with GDP per capita, on par with many advanced economies of the European Union.

INFRASTRUCTURE. National telecommunications system of Indonesia is usually right, while its international services can be classified as well.Broadband Internet are concentrated especially in big cities. Road systems are more developed than Indonesia populated island of Java, Sumatra developed enough and Sulawesi, but poorly developed on the island of Kalimantan. in addition to sea ports serving the international shipping lines, Indonesia are also served by small ports, coastal navigation service. All towns and major cities are connected by air transport services.

INTERNATIONAL TRADE. Indonesia's major trading partners include Japan, USA, Singapore, Korea and China.Most of the imports from Singapore Singapore re-exports from other countries and exports to Singapore are re-exported to other countries.Main exports from Indonesia include oil and gas, electrical appliances, plywood, textiles and rubber products. main imports include machinery and equipment, transport equipment, chemicals, fuels and food.

USING CONSUMER TECHNOLOGY.Mobile penetration is only 13% of the population, which is less than Singapore (93%), Malaysia (67%) and Thailand (45%).In addition, there are only 10 million landline telephones serving the whole country.Computer penetration is less than 2% of families and the country has only 1.2 million Internet subscribers with nearly 12 million Internet users i.e. a penetration of only 0.5% of the population. Most houses and Central High reddite would own televisions, but the penetration into the homes of low income is below.So the penetration of television in Java is almost 60% and 52% in Sumatra.Similar scenario exists for refrigerators.

RETAIL MARKET. retail sales of food and non food items amounted to about 32 billion dollars in 2004. Many Indonesians still shop at traditional markets or businesses "MOM and pop", but in modern shopping malls, hypermarkets, supermarkets, minimarket and supermarkets is getting more popular. There are nearly 5,000 such establishments in modern Indonesia accounting 4.5 billion of retail sales in 2004. most of these establishments are concentrated on the island of Java, followed by Sumatra. Since 1998, the Government opened the retail sector for foreign investment and participation.

FOOD CULTURE of Indonesia. food culture is diverse due to the different ethnic communities and sub-ethnic that make up the country's population. dishes eaten are the rice dishes and occasionally tagliatelle. However, there are many points of Western fast food franchise that is primarily found in major cities such as Jakarta, Surabaya, Bandung, Yogyakarta and Semarang. media outlets bakery high-end bakeries to serve Western and local are also found in large cities.

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