Royal University of Phnom Penh

Department : International Business Management

Instructor: Hanz Tso Teera

IBM A1
Group Assigment 2
1. Por Kimeng
2. Bona Maryross
3. Koeur Somrach
4. Tang Ouyseng
5. Kim Ovleng
• Official Name: Republic of Indonesia
• Capital City: Jakarta, which is the business and
governmental centre
• President: Joko Widodo
• Government Unitary presidential constitutional
republic
• Independence: 17 August 1945
• Currency: Indonesian Rupiah (IDR)
• Indonesia is one of original members of
The national emblem: Garuda Pancasila
ASEAN, was established on 08 August 1967
• The national emblem of Indonesia is called
Garuda Pancasila

7th President: Joko Widodo

• Area: 1 904 569 km 2
• Coastline: 54 720 km 2
• Capital city: Jakarta
• Total population: 267,670,543
• Climate: Mostly tropical rainforest
• Wet season from November to April
• Dry season from May to October
• Religions: Muslim 87.2% Protestant -
Christianity 7% Catholic Christianity
3% Hinduism 1.7% Buddhism 0.7%
Confucianism 0.05% and other 0.45%
 Indonesia is an archipelagic country lying between between the
Indian ocean and Pacific ocean.

 Indonesia share land borders with Malaysia on Borneo, Papua New

Guinea on the island of New Guinea, and East Timor on the island of
Timor, and maritime borders with Singapore, Malaysia, Vietnam,
Philippine, Paplau , and Australia.

 The five main islands are Sumatra, Java, Borneo, Sulawesi and New
Guinea.

 Natural resource: silver, coal, natural gas, petroleum, gold, copper,

timber, oil.
Economic of Indonesia
Trade balance

• Indonesia had a positive trade balance of $35.1B.

• The GDP of Indonesia was $1,02T.
• The GDP per Capital was $12.3k.
vProduct Space
• The 71st most complex economy according to the ECI.
• Indonesia exports 257 products with revealed
comparative advantage.
Indonesia Export

• The 25th largest export economy in the world

• Indonesia exported $188B in 2017.
• The top exports of Indonesia are Coal Briquettes, Palm
Oil, Petroleum Gas, rubber, and Crude Petroleum.
• Its top export destinations are China, the United States,
Japan, India, and Singapore.
 EXPORT
20
CONTINENT SOUTH
18.9 OCEANIA AMRICA
18.2
2% 1%
18
AFRICA
16 3%
14
NORTH
12 AMERICA
12%
10 8.99

8 EUROPE
5.68 13%
6 5.34

4
ASIA
2 69%

0
VALUES (B$)

Coal Briquettes Palm Oil Petroleum Gas

Rubber Crude Petroleum

USING THE 1992 REVISION OF THE HS (HARMONIZED SYSTEM)

CLASSIFICATION.
Import

• In 2017 Indonesia imported $153B.

• The 29th largest importer in the world.
• Its top imports are Refined Petroleum, Crude Petroleum,
Telephones, Vehicle parts, and Petroleum Gas.
• The top import origins are China, Singapore, Japan,
Malaysia, and Thailand.
 IMPORT Continent South
Africa
16 Oceania 3% America
14.2 5% 2%
North
14
America
12 6%

10

8 7.44
Europe
6 10%
4 3.13 3.01 2.71
2

0 Asia
74%
Values ($B)

Refined Petroleum Crude Petroleum Telephones

Vehicle parts Petroleum Gas
 Tourism
 Tourism contributed around US$19.7 billion to GDP in 2019. In 2018, Indonesia
received 15.8 million visitors, a growth of 12.5% from last year, and received an
average receipt of US$967. China, Singapore, Malaysia, Australia, and Japan
are the top five sources of visitors to Indonesia. Since 2011, Wonderful Indonesia
has been the slogan of the country's international marketing campaign to promote
tourism.
 Indonesia has nine UNESCO World Heritage Sites, including the Borobudur Temple
Compounds and the Komodo National Park; and a further 19 in a tentative list that
includes the Jakarta Old Town, Bunaken National Park, and Raja Ampat Islands.
Borobudur, Indonesia Map showing the location of Komodo National Park
 Map of Raja Ampat
islands, Indonesia
Total islands 612

Jakarta History Museum was

housed on the original town hall
of 17th-century Batavia, the
capital of Dutch East Indies and
center of the Asian spice trade.
View Indonesia's Tourism Revenue from 2006 to
2017 in the chart:
Business in Indonesia
• Indonesia is the fourth most populous country in the world, with a population
of almost 250 million. Its economic stability in recent years has also made it a
hotbed for investment, both local and foreign. Its government has recognised
this potential and has introduced measures over the years that encourage
foreign investment, while also trying to improve the various regulations
involved.
• According to the World Bank's Doing Business 2015, Indonesia ranked 114th
out of 189 countries in ease of doing business. But it did rank high in areas
such as protecting minority investors (43rd) and trading across borders
(62nd).
Invesment In Indonesia
• Indonesia welcomes foreign investment on its own terms.
A “foreign investor” is usually a foreign company
incorporated under the laws of its host nation, however
foreign individuals are also acceptable.
• The Investment Law regulates FDI by granting a right of
entry to foreign businesses through a government
licensing procedure principally controlled by BKPM.
Invesment Sectors
Invesment Sector

• As a general rule, foreigners can only invest through

setting up a limited liability company (Perseroan Terbatas
or PT). A PT can be a joint venture set up by a foreign
investor and an Indonesian partner, or a company whose
ownership is exclusively foreign and in which foreign
holdings can reach 100%.
• Main Foreign companies: Total, Shell, British petroleum,
Credit Lyonnais, ING Bank, ABN Amro Bank, Nike,
Reebok, Adidas, Carrefour, Danone, Accor...
Indonesia’s Top 10 Investors from 2013-2017,
Based on Adjusted FDI Amount (in USD Mn)