Stacia Neilson Indonesia 1

Stacia Neilson Indonesia

Table of Contents

Introduction...... 3

Issue………………………………………………………………………………………………………..4

Non-Profit………………………………………………………………………………………………5

Geographical Analysis...... 6

Economic Analysis 1 ...... 8

Economic Analysis 2 ...... 11

Political System ...... 14

Trade Laws...... 16

Population ...... 17

Diet and Nutrition ...... 19

Housing...... 20

Transportation ...... 21

Labor...... 22

Education ...... 24

Clothing...... 25

Recreation and Leisure ...... 26

Language...... 28

Religion...... 30

Bibliography……………………………………………………………………………………………..30

Appendix…………………………………………………………………………………………………34

Print Ad…………………………………………………………………………….33

Brochure…………………………………………………………………………35

Images……………………………………………………………………………36

Etiquette………………………………………………………………………..37

Country selection letter………………………………………………..38

Stacia Neilson Indonesia

Introduction

In the pages to come, many topics will be discussed providing an overview of Indonesia. The purpose of the document is to inform the reader of possible business potential in Indonesia while providing a base knowledge. The topics discussed are designed to give the reader an understanding of life and Indonesia.

The first section is a geographical analysis. It aims to inform the reader of Indonesia’s topography, climate, as well as how geography may affect a business. The next two sections discuss many parts of Indonesia’s economy ranging from economic classification to currency information. Following economics is a section about the political system of Indonesia. It basically provides a description of the government system and its different parts. Information on trade laws and a legal analysis are provided in the next section. The following sections are mainly about the people. The next section gives statistics and demographic descriptions about the population. Diet and Nutrition is the next section, it basically discusses Indonesian food and eating habits. Housing and transportation are the next two sections. Housing describes the structure of homes in Indonesia as well as giving statistics about urban and rural dwellings. The transportation gives basic information about different modes of public and private transportation. Labor is the next section covered. In this section, statistics are presented about the labor force concerning gender and occupation. The next section topic is education. A description of the education system is provided in addition to statistics about enrollment. The next section covers the clothing of Indonesia. The topic after clothing is recreation and leisure. Descriptions about some of the most common recreational activities are provided in this section as well as basic travel information on entering and exiting Indonesia. The last two topics are language and religion. Language presents the official language as well as minor languages in addition to some statistics. Religion, the final section covers the major religions in Indonesia and provides some statistical information.

When choosing a country, I thought of countries that I have personal interest in. Indonesia was one of the countries that came to mind because my grandmother was born and raised in Indonesia. I looked at information for all of the countries that I was considering. In doing so, I learned that Indonesia is a fabulous place for tourism, as there are many tourist attractions. Indonesia is a beautiful country and would be fabulous for tourism.

Stacia Neilson Indonesia

Issue

As Americans we take things for granted. People all over the world don’t know when they are going to see their next meal. This is a big problem in Indonesia, even though Indonesia has many different islands and has a good agriculture program it is still not enough for the starving families. Along with starvation comes malnutrition as well as disease. Many families are sick and starving and have no place to go.

Indonesia is the fourth most populated country in the world. Due to the economic crisis in Indonesia the health systems have be greatly affected and put to a slow crawl. This has led to more and more people getting sick from disease and more kids suffering from malnutrition. The mortality rate has increased recently due to diseases it is now one of the most common reasons for death alongside of malnutrition and starvation. Tuberculosis, malaria, STD’s, and Dengue fever/dengue hemorrhagic are the main diseases in Indonesia which lead to death. Every year there are approximately 1.5 million cases of malaria detected. Malaria’s main victims are children 10 and under, this parasite will take over its host slowly and cause pain to its victim.

The main victims in Indonesia are women and children. 5 million women and children die annually from disease and malnutrition. 20,000 women die during pregnancy or delivery. 50% of these women are giving birth in unsanitary areas due to not being able to afford medical care or cannot get into a medical facility. This is just pregnant women and young children, think of how many people can’t make it to a medical facility that have some kind of disease. A lot of Indonesia’s health problems come from the environment. The air in Indonesia is very polluted and the water sources are often contaminated. The air as well as water is often contaminated by chemicals. It is very commonly affected by the agriculture business when they use chemicals on crops. This allows the chemicals to get on the food as well as in the air which means the people may not realize that they are being exposed to harmful chemicals.

It is important that we step up and help as they are a growing trade partner with the United States. The U.S.-Indonesia Comprehensive Partnership has shown increasing improvement and lots of potential. However without the help of the United States they may be facing a crisis in the health of the country. Indonesia brings in billions of dollars in trade and is still increasing. This could potentially be a big step to help both countries take a step in a better direction.

Stacia Neilson Indonesia

With Indonesia facing severe malnutrition and lack of a good health system it is important that the United States steps up and lends a helping hand. With the large amount of families facing starvation and malnutrition Indonesia needs help to get their health systems back up to par. With the help of the people of the U.S. it is possible to start a non-profit organization where families can go for medical attention as well as a place to sleep and get food. The Health and Humanity Foundation will provide shelter and medical attention for families in need.

Non-Profit

The Health and Humanity Foundation

Our mission is to nourish and care for the people of Indonesia by offering medical support, food, and housing.

The Health and Humanity Foundation will provide medical attention for families in need. Not only will it be a medical center but will also be a shelter where people can go to get food and a warm place to sleep. In the Health and Humanity Foundation patients are able to build relationships with the volunteers as well as other patients. This will help the foundation to become a community rather than a homeless shelter. Patients will be able to come and get a variety of attention. When they check in for the first time they will fill out a form of what attention is needed. This will help us to be more efficient in our work. The foundation will be split up into separate sleeping quarters for people with different needs. Not only will this help prevent spreading of disease but will also be easier for the nurses and workers to provide the upmost care for the patients.

In order to nurse people back to health that have suffered from malnutrition they will need to stay for multiple weeks. There will be a cafeteria set up in a centralized area so people there for all needs can access food at their convenience and will be served three meals a day. People suffering from spreadable diseases will be sectioned off with special nurses tending to them. This organization can give people a chance at life especially children that didn’t start out with a fair chance. With this organization the malnutrition numbers will start decreasing. Also with medical attention being spread throughout the country the disease rates will start to decrease.

There are many ways that this organization will receive money. The first and one of the most important ways is through donations. There will be many available options through which people can choose to donate. People can choose to donate cash, non-perishable food items, and clothing. Volunteering is a big part of this foundation, many individuals find more happiness in giving then they do in receiving. With this being a non-profit organization it is critical that we have volunteers willing to donate their time in order to benefit others. Another way the Health and Humanity Foundation will receive money is through the sponsor a child program. On our website www.healthandhumanity.com there will be pictures posted of orphan children. This will allow people to choose an individual child that they can

Stacia Neilson Indonesia choose to support. This program allows people to set up a payment program to send the child money every month toward food and clothing.

The Health and Humanity Foundation will be partnering with Best Western Hotels, hospitals throughout the U.S. as well as Nike. The Best Western Hotels across the U.S. will be helping by donating $0.25 per person that stays at a hotel, towards the foundation. Hospitals will have donation jars as well as for every 10 people that get a vaccination in the U.S. 1 vaccination is sent to the foundation for their medical program. Nike will have a similar system; for every 10 pairs of running shoes bought in the U.S. 1 pair of shoes will be sent to the foundation. These corporations will make it possible to provide the foundation with money and supplies to support patients.

Geographical Area Analysis

Indonesia is located between the Indian Ocean and the Pacific Ocean; it is just above Australia and just below the countries of Thailand, Vietnam, and the Philippines. Indonesia is home to more than 17,000 islands, with large waterways leading to them all. This large country and high percentage of people living in it creates a perfect market for trading, and has been for many years, trading with China and India. The county of Indonesia itself is rich with natural resources; however, most of the population living there is living in poverty. Indonesia has a republic government and also has a huge diversity of ethnic groups, about 10 different known ethnicities. (U.S. Department of State)

Indonesia's climate is tropical year round; this is due to the surrounding warm waters. From the mountains to the coast lines the temperature averages from 23-28 degrees Celsius. Also the hours of sunlight remain almost constant throughout the year. Due to the long hours of day light as well as the warm temperature it allows crops to grow year round which is ideal for trading as well. A long with temperature and daylight Indonesia also gets plenty of rainfall which makes irrigating easy. On the down side monsoons are common in Indonesia and can be very destructive.

Indonesia's topography is different on each island but most all of them have good pots for growing and fertile ground. Indonesia’s larger islands have central mountains and costal planes. Also there are over 400 volcanoes 100 of which are active and some of the islands have lower planes. The volcanoes make really rich soil which is great for crop and the soil can get washed down rivers which spread it across the island. A lot of the land is covered with rain forests; in which live many different species of animals.

Indonesia is the fifth most populated place in the world. It consists of thousands of islands but only 6,000 are inhabited. Indonesia is part of the ring of five having the most active volcanoes

Stacia Neilson Indonesia than anywhere in the world. It also has very rich soil which makes it a perfect place to grow crops; however it is also very prone to natural disasters like earthquakes, tsunamis, and monsoons. With its high population and beautiful land it makes it a wonderful place to live

• Rich soil great for growing crops

• Big population

• Tropical Climate

• Lots of water ways

• Trading partners with some of the biggest exporters

• Lots of rainfall makes irrigating easy

(nations online, 2012)

Stacia Neilson Indonesia

Economic Analysis 1

Socialism

In Indonesia, the government plays a significant role in the economy. However prices are not regulated on all goods. Fuel, rice, and electricity are examples of some goods that the government regulates prices on. Since the 1980’s the government has removed some economic regulations to help stimulate employment and growth.

Indonesia’s economy has been able to maintain an overall steady state over the last few years. Throughout the global crisis Indonesia has maintained GDP growth.

Non-Renewable Resources

Crude Oil – Unrefined petroleum taken from the ground, it is refined and used for fuel. Crude oil is Indonesia’s largest export commodity. Natural Gas – Combustible substance that is formed in rocks, it is used for fuel and also one of Indonesia’s top export commodities. Bauxite – Clay like mineral containing aluminum Silver – mineral that is commonly used for jewelry, coins, electronics, and photography. Copper – Reddish brown, metallic mineral that is a great conductor of heat and electricity. It is commonly used in electrical wires, water pipes and to make corrosion resistant parts. Gold – Precious metallic mineral, commonly used in jewelry and for decoration. It has a high monetary value and is used internationally. Coal – Black combustible mineral, widely used for fuel and is one of the main energy sources used to produce electricity.

Renewable Resources

Timber – Wood obtained from trees, commonly used for building. Rubber – A natural substances harvested from rubber trees. It is primarily used for manufacturing purposes. Indonesia is the second largest producer of natural rubber and is therefore an important export. Rice – A starchy grain of a marshy grass. Indonesia is one of the world’s leading rice producer. It is one of Indonesia’s top export commodities, but it is also a very common food for all classes in Indonesian society. Palm oil – Yellow, butter-like oil used as an edible fat and for making sap and candles. Coffee – Beans taken from a coffee tree. They are ground to make a coffee drink. Indonesia is currently the fourth largest coffee producer in the world. Cotton – A soft, white, down substance consisting of hairs or fibers attached to the seeds in cotton producing plants. It is used to make fabric, thread, and wadding. In Indonesia cotton is used to make textiles.

Stacia Neilson Indonesia

Industries

Crude Oil and Natural Gas – The production of oil and natural gas. It is taken from the ground and processed from there. MedcoEnergi, National Oil and Natural Gas Mining Company (Pertamina), Cheveron, BP, ConocoPhillips, ExxonMobil, and Total are all oil production companies in Indonesia. Textiles – Cotton and other fibers are turned into cloth. Adetex, Around Star, Aditya Birla, Narmada Textiles, and P.T. Ever Shine Textile are all textile companies in Indonesia. Apparel – Textiles are made into clothes. Metramatex, Mitra Usaha Semsta, Adetex, Apac Inti Corpora, Mimilove, and Ayu Orchid are all Indonesian apparel companies. Footwear – The manufacturing of shoes. Loggo, Golden Summit Trading Co., Anugrah Mandiri Nusantara, Dragon Shoes Company, and Pelita Tomangmas are Indonesian footwear companies. East Asia Minerals Corporation, Freeport McMoran Copper & Gold Inc., Newmont Mining Corp., Kartika Selabumi Mining, Pendopo Coal, and Britmindo are mining companies in Indonesia. Mining – Minerals and ores are extracted from mines. Cement – The production of cement. Indocement Tunggal Prakarsa, Holcim Indonesia, Semen Gresik (Persero), Semen Andalas Indonesia, Asosiasi Semen Indonesia, and Semen Padang are cement companies in Indonesia. Chemical Fertilizers – The production of chemical fertilizer. Toepfer International-Asia, Petrokimia Gresik, Taiko Persada Indoprima, Yara Indonesia, and Pupuk Kujang are Indonesian chemical fertilizer companies. Plywood – The manufacturing of plywood in a mill using timber. Natko Pacific, Daya Sekawan Abadi, Girisantosa Adiraya, Kayu Lapis Indonesia, Inracawood Mfg., Tjipta Rimba Djaja, and Saya Raya Indah Woodbased Industries are plywood manufacturers in Indonesia. Rubber – The extraction of rubber from rubber trees. Food – The production of foods. Tourism – The hospitality industry, a mixture of hotels and companies that assist people in organizing a trip to visit Indonesia, usually for vacation purposes.

` GDP official exchange rate: $834.3 billion. The chart to the left shows the parity power of three different countries including Indonesia. As you can see from the chart Italy has the highest amount of purchasing power. The purchasing power of parity allows us to compare countries within the same bounds. This makes it easier to keep the country up to par with the other larger countries.( U.S. Department of State)

Stacia Neilson Indonesia

The GDP growth rate allows us to compare countries. As you can see Indonesia has a higher growth rate then the other countries and this is most likely due to it being a developing country.

Indonesia does not have a very large income rate so especially when you look at it in American dollars their income is very low. Indonesia’s rupiah is worth less than a penny in America. This is the reason for the capita being so low.

Stacia Neilson Indonesia

Economic Analysis 2

Here are the major export commodities of Indonesia

•Oil and gas

•Electrical appliances

•Plywood

•Textiles

•Rubber

(Central Statistics Agency)

Indonesia’s main export partner is Japan this is because of they have an econimic partnership to try to keep both countries strong.

(Economy Watch)

Stacia Neilson Indonesia

Here are the major import commodities of Indonesia

• Machinery and equipment

• Chemicals

• Fuels

• Foodstuffs

Stacia Neilson Indonesia

Indonesia main import by far is machinery and appliances. They also import a large portion of mineral fuels and natural gas. Since they have a shortage they import a large amount of these items.

Indonesia has a large amount of exports that brings in a large portion of money however is spent on the large amount of imports the needed.

Indonesia is the 29th largest exporter in the world; their largest export is oil and gas. All though Indonesia has a lot of exports most of the money made on exports is spent on imports. In 2011 they made 146.3 billion dollars on exports but spent 111.1 billion on imports.

Currency: Indonesian Rupiah

1.00 IDR = 0.000108814 USD

Indonesian Rupiah US Dollar

1 IDR = 0.000108814 USD 1 USD = 9,190.00 IDR

Stacia Neilson Indonesia

Political System

Indonesia has a philosophical foundation known as the Pancasila. This foundation consists of five main principals. They are the “belief in the one and only God, just and civilized humanity, the unity of Indonesia, democracy guided by consensus arising out of deliberations amongst representatives,” and “social justice for all of the people of Indonesia” (indonesiamatters.com). The government is very similar to the US; they have an executive branch, a legislative branch, and a judicial branch, however most power lies with the people of Indonesia.

Republic – Much like a democracy, in a republic, the supreme power rests in the people. The power is exercised by representatives either chosen directly or indirectly by the people.

The executive branch of Indonesia’s government consists of a president and a vice president. Along with this the president also appoints a cabinet. The president is the chief of state and is the head of government. Both the president and vice president are elected for five-year terms and can serve as many as two terms. The current president is Susilo Bambang Yudhoyono and the current vice president is Boediono. The legislative branch consists of three houses. People's Consultative Assembly (Majelis Permusyawaratan Rakyat or MPR), the upper house, is made up of representatives from the other two houses. This house plays the role of inaugurating and impeaching the president as well as making amendments to the constitution, but it does not form national policies. The House of Representatives (Dewan Perwakilan Rakyat or DPR) is made up of 560 seats. When new members are elected they serve 5 years. The House of Regional Representatives (Dewan Perwakilan Daerah or DPD) is made up of 132 members. There are four from each of Indonesia’s 30 provinces, two special regions, and one special capital city district. According to Indonesia’s constitution, the role of DPD is to give legislative input to DPR on issues involving the regions. The judicial branch consists of the court system. The Supreme Court (Mahkamah Agung) is the highest court of appeal, but it doesn’t have the power of judicial review. The president appoints Supreme Court justices from a list of candidates chosen by the legislature. Constitutional Court (Mahkamah Konstitusi) has the power of judicial review as well as reviews actions to impeach a president. They also have jurisdiction over the results of general elections. Labor Court is under the supervision of the Supreme Court. Finally, the Anti-Corruption Court has jurisdiction over cases involving corruption that were brought by the independent Corruption Eradication Commission.

Stacia Neilson Indonesia

The major political parties in Indonesia are the Democrat Party (Partai Demokrat or PD), Functional Groups Party (Partai Golongan Karya or GOLKAR), Great Indonesia Movement Party (Partai Gerakan Indonesia Raya or GERINDRA), Indonesia Democratic Party-Struggle (Partai Demokrasi Indonesia Perjuangan or PDI-P), National Awakening Party (Partai Kebangkitan Bangsa or PKB), National Mandate Party (Partai Amanat Nasional or PAN), People’s Conscience Party (Partai Hati Nurani Rakyat or HANURA), Prosperous Justice Party (Partai Keadilan Sejahtera or PKS), and United Development Party (Partai Persatuan Pembangunan or PPP). The Democrat Party envisions a democratic and flourishing world through nationalism, humanism, and internationalism all while keeping a devotion to God. The Functional Groups Party was established to offset the Indonesian Communist Party. It was formed in order to represent all of Indonesia’s social and economic groups. This includes workers, professionals, farmers, civil servants, veterans, and fisherman. The Great Indonesia Movement Party is based upon the belief in unity through the nation as well as fairness and success. The Indonesia Democratic Party- Struggle is a non-Islamic political party. In the past it has had anti-governmental factions. The National Awakening Party supports religious tolerance and democracy. They are in opposition of an Islamic government. The National Mandate Party is based on principles of religious morality, humanity, and prosperity. The People’s Conscience Party is based upon independence as a nation and the welfare of the people of Indonesia. The Prosperous Justice Party is an Islamic party that believes in Islam as the solution in the life of the nation, spreading Islamic values and teachings, helping Indonesia to progress as a civil society, and uniting people and smaller entities through Islam. The United Development Party is an Islamic party that bases its visions on the beliefs of Islam. (IPU PARLINE Database)

Political Leaders

President Susilo Bambang Yudhoyono

Vice President Boediono

State Secretary Maftuh Basuni

Indonesia has had some conflict over the past few years. A war on terror is continuously being fought after terrorist bombings in Bali in 2002. The current president was elected in 2004 and served a term of five years. He was reelected in 2009 and will be in office until 2014. The government has remained stable through the war.

The Indonesian legal system is based on Roman-Dutch law but has been substantially altered by Indonesian concepts as well as new election codes and criminal proceedings.

Suffrage – “17 years of age; universal and married persons regardless of age” (CIA World Factbook)

Stacia Neilson Indonesia

The Indonesian flag is based on the 13th century Indonesian Empire Banner. The red stripe represents the body and the white stripe represents the soul. It was officially adopted August 17, 1945.

Trade Laws

Indonesia’s trade is controlled by many laws and taxes. An import duty is put on any goods that are imported for home use such as rice and electricity. Indonesia is part of many Trade Agreements and has few import restrictions due to this. Most of the trade restrictions are in place to help the economy and improve quality.

Specific tariffs are based upon a specified amount per unit of measurement. There is currently a tariff on electricity in Indonesia. Based upon ranges per kilowatt-hour (kWh) in US cents per kWh. Residentially, tariffs range from 1.69 – 4.60. Commercially, tariffs range from 2.77-5.65. Industrially, tariffs range from 1.71-4.38. There is also a tariff on rice. Currently, it is 450 Rupiah/kg.( ASEAN Electricity Tariff Database)

Import Taxes

Import taxes range from 0 – 170%, there are import taxes placed on various types of goods. The rates vary by the type of good. There is also a tax added based on the value of the item the tax amounts range from 0 – 10%. Although it depends on the types of goods there can also be a sales tax on Luxurious Goods. The amounts can be 10%, 20%, 35%, 40%, or 50%, depending on the types of goods. All importers must pay an income tax. Registered importers pay 2.5% and unregistered importers pay 7.5%. All taxes and duties are paid through a foreign exchange bank or a Customs Service Office before Customs or import Declaration is submitted. Goods are classified based on the Harmonized Commodity Description and Coding System (HS)

Stacia Neilson Indonesia

Trade Agreements

There are various Trade Agreements with countries around the world that Indonesia takes part in. The General Agreement on Tariffs and Trades (GATT) is the largest of which Indonesia has joined. Indonesia became part of the World Trade Organization (WTO) in 1996 after its introduction by GATT in 1994. Indonesia is also part of some regional agreements such as Asia-Pacific Economic Cooperation (APEC) and ASEAN Free Trade Area (AFTA).

Trade Restrictions

Today very there are very few restrictions that apply imports due to trade agreements. “According to the Nation Agency For Export Development (NAFED) imports that are still prohibited include: motorized vehicle tires, electric light bulbs, matches, some types of textiles, batteries, iron sheets both galvanized and un-galvanized, fully assembles automobiles and motorcycles and radio and television sets” (internationalbusiness.wikia.com). Many of these goods are produced in Indonesia and are prohibited because their production is view as important to the stability of Indonesia’s economy. There is one main restriction that includes both imports and exports and that is the shipping restriction. It states that goods either entering or leaving the country must be transported on an Indonesian vessel, and some specific export regulations apply. Generally, agricultural products including plants, food, and animals and must pass an inspection by one of the governing sectors; this apply to imports as well as exports.

Population

Population distribution, growth rate, and the population of the five largest cities are the most relevant information due to in. When looking at the demographics needed for a business the first piece that they look at is the population distribution. The growth rate tells us that there is substantial growth in the population meaning more potential customers. Knowing the largest cities, their locations, and basic information about them, helps in determine the possible locations for a business. For example a foreign business would do well close to a major city due to the flow of customers and that goes for most any product. (Nation Master)

Population – 242,968,342

The population growth rates appear to be rather low, but 1% of 250 million is 2.5 million. Having said that, Indonesia has a fairly high growth rate. It also has the fourth largest population in the world.

Stacia Neilson Indonesia

Indonesia has one of the highest birthrates and also has a very high population. All three of the countries seen on the chart are bound to have a high birthrate due to the large population.

In the chart to the right you can see that the life expectancy in Indonesia is much lower than in the US. This is due to the fact that Indonesia is not as developed as the US.

As you can see in the chart to the left, most of the population in Indonesia ranges in age from 15-64. Also the male and female ratio is very close.

The chart to the left shows the population in the five largest cities in Indonesia. The largest city in Indonesia is Jakarta which is also the capital.

Stacia Neilson Indonesia

Diet and Nutrition

Indonesian meals are typically simple, but unique. Spices, roots, leaves, and grasses are often used in meals to create a better flavor. Spices such as chili peppers, ginger, coriander, and cumin are frequently used. Rice is used in most every meal and if not it is replaced by soybeans or yams. Vegetables are very in Indonesian cuisine. Meat is also very commonly used like fish and chicken. Sumatrans and Eastern Indonesians usually eat more fish than chicken, versus Javanese and Sudanese eat a more balanced variety of chicken, fish, and meats. Indonesians do not have a set meal time so every morning a large meal is made and then reheated throughout the day for small meals. (EarthTrends)

According to the graph on the left, on an average, each person in Indonesia eats roughly 2,900 calories a day.

This chart shows the percentage of children in Indonesia that are mildly or severely underweight. According to the chart 28% of children are underweight. That is a lot of kids that are not being taken care of when you take into consideration the population of Indonesia.

According to the chart to the left you can see that Indonesia’s meat consumption is way less than its competitors. They do not eat a lot of meat in Indonesia.

Stacia Neilson Indonesia

Housing and Communication

In Indonesia the housing is dependent on where they are located. Typically if they live in the city they live in apartment buildings. As you move further out into the suburban areas you start to see the housing developing more into neighborhoods. As you keep going further away from the city the housing becomes more of huts. These huts are typically made out of bamboo or wood. They are typically only one to two rooms and are not very big. About 48% of Indonesians live in rural villages. Urban villages, referred to as kampung, are crowed with makeshift, houses and huts. The other half of Indonesian’s live in suburban and urban areas.

Telephones are frequently used in Indonesia. Cell phones are now very common and the cellular networks are growing rapidly. Also the internet is widely used throughout Indonesia both for personal as well as business manners. Television services are available throughout Indonesia and are now a common source of entertainment. The internet, radio, and television are viable source advertisement while entertaining the listener

Indonesia’s urbanization is still on the rising. They will keep rising due to them being a developing country.

More Indonesians live in rural conditions rather than urban this is partially because of their culture and liking living in more rural places.

Stacia Neilson Indonesia

Transportation

There are many different sources of transportation in Indonesia. Taxis, buses, and trains are all sources of public transportation. Buses and trains are often used when going back and forth between large cities. Taxis are commonly used for transportation to small towns. 30% of Indonesian’s use public transportation and the other 70% use personal transportation methods such as cars, motorcycles, and bicycles. 60% of the private owned vehicles are motorcycles. As of 2002, approximately 6.2 million Indonesians owned vehicles. Today, the ownership growth rate is estimated to be around nine percent. Traffic in major cities frequently becomes stopped and congested. For example the roads in Jakarta have a capacity for approximately 1 million motorized vehicles per day however; an estimated 1.5 million motorized vehicles pass over the roads of Jakarta every day. (The Jakarta Globe)

Indonesia has a total of 437,759 kilometers of roadways, as of 2010. As you can see, there are more paved roads than unpaved. This could allow for easier transportation of goods. The number of roads in Indonesia is growing at a rate of approximately one percent. Looking purely at the available roadways, it appears that transportation by road would be viable, but if you research further, traffic counters this. Within large cities, traffic would make this mode of transportation extremely inefficient and inconvenient.

As you can see from the graph to the left, there is a significant amount of waterways. This particular mode of transportation wouldn’t be an efficient source of transportation for goods, but on the flip side since Indonesia is an island country; transportation by water would be both convenient and efficient if the destination is located along the coast. Railways are not predominant enough to be a practical source of transportation for products; all though some railway transportation may still be available.

Stacia Neilson Indonesia

Indonesia has many airports. This means that it would be easy to transport goods from island to island or even across an island. There are also many ships available. Products could be easily transported by ship, especially for locations along the coast.

Labor

Job Market and Availability In Indonesia child labor is used, this is common in many of the Asian countries. In 1951 there was a law set that the minimum age to work was 14 however this was never enforced. In today’s world the minimum working age is 15. Child labor laws are very difficult to enforce. In 1994, the United Nations Commissions on Human Rights reported that there are 2.7 million children working between ages 10 and 14.

In Indonesia there are better relationships between the employees and the employers. Due to this, typically if there is a complaint the employee can take it directly to the employer. Rather than viewed as just another worker employees are viewed more as family. Most disputes between employers and employees are settled without to much trouble. Most of the employers try to look at what is best for their workers, they listen to the complaints and opinions expressed by the empoyees.

The state made some benefits mandatory such as the following: “The social security system for private sector employees (Jamsostek) provides a benefit on retirement at age 55, on death before age 55, and on permanent disability. The benefit is equal to the contributions paid plus interest. Interest is currently 8% a year and is subject to a maximum of 10% a year. If the total is less than IDR 3 million, the benefit is paid as a lump sum. If it is more than IDR 3 million, it must be paid in installments over a 5 year period. On death prior to age 55 an additional lump sum of IDR 10 million is paid, plus a dependants’ allowance of IDR 200,000 a month for 24 months. Medical expenses reimbursement is provided for employees and up to three dependants” (Indonesia Benefits Network). Employers can also choose to offer other benefits such as medical insurance.

Indonesia Labor Force

120 113.3 Indonesia’s labor force is made up of 42% women and

100 58% men. Islam is the predominant religion in Indonesia so most of the workers follow Islam. 80 66.8

60 46.5

22 Millions) 40 20

Number of Workers Number(in of 0 Total Male Female Stacia Neilson Indonesia

Employment Sectors 42.1 45 39.3 40 35 30 25 18.6 20 15

Occupation 10

Percent of Labor of Labor Percent 5 Indonesia’s main place of occupation is in the 0 Agriculture Industry Services agriculture department. They are very good Sector agriculture due to the rich soil and rain for watering.

Industries In Indonesia there are three main sectors of employment. They are agriculture, industry, and services. As you can see from the graph on the left, agriculture has the highest percentage of labor force, closely followed by services. Industry is the smallest sector in terms of labor occupation, but it is the most profitable in terms of GDP.

The main industries in Indonesia are manufacturing, food, mining, tourism and oil and natural gas production. Textiles, apparel, and footwear are some of the main manufactured products. Rubber and production are two of Indonesia’s top industries and are a large source of job opportunities. There are also job opportunities in cereal production. Laborers are needed to harvest many agricultural products.

Workday In Indonesia the work week is Monday through Friday, however in some businesses they work on Saturday as well but only for half a day. The maximum workday is seven hours a day or 40 hours per week. Some businesses allow overtime and in these cases they are able to work 9 hours a day or 54 hours a week. In Indonesia Business hours are very similar; most businesses open between 8 AM and 9 AM and close between 4 and 5 PM. (Wiki)

Work attire is usually fairly casual in Indonesia due to extreme heat and humidity. Since Indonesia is mostly Muslim culture, conservative dress is important. Women wear shirts that cover their upper arms and skirts that are knee length or longer. Jeans are appropriate for very casual situations. It is common for men to wear light colored, open-necked, long sleeved baltik shirts with a tie and dark slacks.

Businesses in Indonesia are somewhat flexible. Since the country is predominantly Islamic, employees

Stacia Neilson Indonesia can adjust their lunchtime to fit prayer time and in most cases are allowed to take a five to ten minute break for another prayer time after lunch. Only two of their prayer times fit in the typical workday.

Holidays of the five major religions are observed. That amounts to a total of 21 days however workers only get 12 days of leave. New Year’s Day, Chinese New Year, the birthday of the Islamic Prophet Muhammad, the Day of Silence (New of the Balinese Calendar), Good Friday (the Friday before Easter Sunday), Buddha’s Birthday, Ascension Day, Ascension of the Prophet, Independence Day (August 17th), End of Ramadan, Feast of the Sacrifice, Islamic New Year, and Christmas are the most common holidays. Most of these holidays are based on religion. (wiki)

The rankings in business are very similar to those of the United States. Typically the ranking system goes from powerful to basic worker. The highest rank is usually a CEO/Director, then Vice President, followed by Senior Manager. Below Senior Manager are lower manager and supervisor levels, which are followed by multiple levels of basic employees or workers.

Education The education system starts out with six years of primary education. The children start school at age seven. After primary they move onto their secondary education which entails 6 six more years of required education. Those six years are divided into two year blocks. After the secondary nothing more is required however more education is highly promoted. (Britannica Online Encyclopedia)

Enrollment Rate

US enrollment levels are much higher than Indonesia’s. This implies that Indonesia has a high dropout rate. These low numbers could also be because Indonesia is still a developing country where as the US is a highly developed country already.

Stacia Neilson Indonesia

Literacy Rate

As you can see from the graph to the right, Indonesia’s literacy rate is over 90% according to 2004 estimates. These rates have mostly likely improved since then. Indonesia is a developing country and improvement happens quickly. Indonesia’s literacy rate is higher than China’s, but Indonesia is significantly less developed.

School Life Expectancy

As a developing country, Indonesia’s school life expectancy is low in comparison to that of highly developed countries like the Us, Germany, and Australia. Indonesia has a 12-year education program from the first year in primary education to the last year of secondary education. So, according to the data, most students drop out of school two years prior to graduation. With further development this could easily improve.

Indonesia’s education system is still developing however it still has a high literacy rate. It is not as high as the US but that is to be expected due to the US being so developed. Along with this English is a required curriculum which is extremely good for business.

Clothing

Business attire in Indonesia is generally conservative. Women dress conservatively making sure that they are well covered from ankle to neck to make sure they are not offensive. Tight fitting clothes are best avoided. (Kwintessential Ltd) Women meeting in a more formal office should wear a suit with hosiery. Women are limited to clothing colors that are muted or dark. Leave brightly colored clothing at home. Men should wear coat and tie until appropriate to dress more casually. Men generally wear

Stacia Neilson Indonesia dark slacks, long sleeve and light colored shirt, and tie (no jacket). Business suits like on the west coast are also acceptable, however it is hot so it’s important to make sure it’s light weight. (Taylor)

An umbrella is an essential wardrobe component in rainy season (September - February). Women should wear long-sleeve blouses and skirts that cover the knee. Women must always cover their upper arms when wearing a casual blouse. Jeans may be worn for very casual, but never shorts for men or women. Even though the climate is warm and humid, proper attire even for very casual appearance will always dictate your choice of clothing. (Taylor)

Traditional Indonesian dress is typically seen in rural areas. Traditional dress remains important for national ceremonial occasions. Men and women alike wear a lower body wrap-around called kain, which is a rectangular fabric usually in batik, or a sarong. In Java and Bali, women use a narrow sash called a stagen to hold the sarong and kain in place. There is a long sleeved blouse that is tight and often sheer called a kabaya that is worn on the upper body. Often, a kabya is made of lace, but it can also be made of cottons that are sheer, lightweight and elaborately decorated. In most cases, women drape a large rectangular cloth called selendang over the shoulder. Men generally only wear k ain sarongs in their homes or for casual occasions. Teluk beskap, which is a combination of a Javanese jacket and kain, is the official national dress for men.

Casual Attire

In Indonesia, casual attire can range from batik long dresses to sarongs. Women wear blouses that cover their upper arms and can wear jeans. Shorts are inappropriate for women. Both women and men can wear sarongs or kain. Men usually wear sarongs at home, or sometimes for informal occasions. Men may wear batik as well.

Recreation and Leisure

Indonesia is a culturally diverse country and has many different recreational activities. These activities range from boat racing to kite flying and from badminton to soccer. There are many opportunities to visit natural attractions, large cities for shopping, and beautiful sandy beaches. There are an unlimited number of activities available in Indonesia.

Stacia Neilson Indonesia

The two most popular sports in Indonesia are football (soccer) and badminton. Football is the most common sport played in Indonesia. Many Indonesians begin playing at a young age and continue throughout life. Indonesians ranging from children to middle-aged men play football. The Football Association of Indonesia (PSSI) is the national football league. There are smaller domestic leagues for a variety of age groups. Football is played at family events and as a fun activity outside of competition. Badminton is widely played in Indonesia. It closely follows football in popularity. Indonesians have many badminton championships. For example, Indonesians are long- standing champions of the Thomas Cup men’s division and the women’s badminton championship. Rudy Hartono is a badminton legend. He is from Indonesia and he won the “All-England” Informal World Championship seven years in a row. Indonesians take badminton seriously. They are champions, but they also play the sport for fun. Many families play together or children and adults play recreationally.

Indonesia has a wide variety of tourist attractions ranging from the city of Jakarta to the extensive Prambanan Temples. Jakarta is the capital of Indonesia. It is very large and has many skyscrapers, much like New York City. There are many national parks such as Komodo National Park, Gunung Leuser National Park, Lore Lindu National Park, and Way Kambas National Park. These are just a few examples; there are many more. The Monkey Forest Sanctuary is yet another interesting attraction. Inside this lush, small, forested area, there are many moss- covered stone statues and between 140 – 200 monkeys. The Borobudur Temple is an extravagant Buddhist temple. The structure looks like a lotus. It’s complex is one of the greatest monuments in the world. Prambanan Temples is the largest Hindu temple compound in Indonesia. It is regarded as one of the imperial temples in South – East Asia. Overall, there are many attractions in Indonesia available to tourists.

Another amazing aspect of Indonesia is its gorgeous beaches. Many activities take place on a daily bases on the white sand and in the blue water. Along the southern beaches of Bali are many craft tables where all sorts of craft activities take place. Beach soccer is also a very popular beach activity. It is played both recreationally and competitively. Beach volleyball is also played on the beaches of Indonesia. There are also many activities that take place in the blue Indonesian waters. Boat racing for instance takes place during the Dragon Boat Festival. Snorkeling and scuba diving is extremely popular along the Indonesian coasts. Also, Indonesia offers excellent opportunities for surfing. Surfing competitions are held throughout the islands, but they mainly take place on Bali. Indonesia’s beaches are full of things to do

Stacia Neilson Indonesia

Indonesia is full of things to do. Activities range from sports like football (soccer) and badminton, to beach activities like snorkeling and surfing, to tourist activities like visiting the Sacred Monkey Forest, Borobudur Temple, Prambanan Temples, and Jakarta. Indonesia’s diverse culture makes it a country where you can never run out of things to do.

Language

The most prevalent languages are Indonesian (Bahasa Indonesia), English, and Dutch. There are also many local dialects. The most common of which is Javanese. In Indonesia, English is viewed as the ticket to employment and a higher standard of living.

Indonesian (Bahasa Indonesia) is the official language. It is the official, modified form of Malay.

There are more than 700 living languages that are spoken in Indonesia. Some of the more common languages are as follows:

• Javanese – Spoken in central and east Java, of the Austronesian family

• Sundanese – Spoken in west Java, closely related to Madurese and Malay

Stacia Neilson Indonesia

• Madurese – Language of the Madurese people of Madura Island, spoken on Madura Island and in eastern Java

• Minangkabau – Spoken in west Sumatra

• Musi (Palembang Language) – Spoken in southern Sumatra and hugely in Palembang city, influenced by Javanese

• Bugis – Spoken in south Sulawesi

• Banjarese – Spoken in south, east, and central Kalimantan, it is the native language of south Kalimantan

• Acehnese – Spoken in northern Sumatra, it is a Malayo-Polynesian language

• Balinese – Spoken on Bali, northern Nusa Penida, western Lombok, and eastern Java

• Betawi – Spoken by people in Jarkarta

There are many different languages spoken in Indonesia. The main one is mandarin Chinese and English is advancing up behind it because it is now required to be taught in schools.

Stacia Neilson Indonesia

English is very influential in Indonesia this is because it is used as the business language. Also it is commonly spoken among tourists.

Religion

Indonesia has many different religions practiced however Muslim by far is the most common. 90% of Indonesian people practice the Muslim religion. The remaining 10% is spread out between Islam, Hinduism, Catholic, Buddhism, Protestantism, as well as Christianity. However it is required that each of the following fall under one of the categories that are acceptable for the government. All though they may be acceptable it may be hard to practice other religion due to the majority of Muslims.

Religion in Indonesia is a very important part of everyday life. It is a huge part of their culture and since most of Indonesians are Muslim they follow Muhammad and look to him both in spiritual practice as well as try to please him in their everyday actions. Muslims pray very often and believe in giving to charity and helping and looking to Muhammad to guide them.

Stacia Neilson Indonesia

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Stacia Neilson Indonesia

Appendix

Stacia Neilson Indonesia

Etiquette

• Do not crook your index finger to call someone over. This gesture is offensive.

• No physical contact between men and women is made in public, except a possible handshake.

• Leaving food on your plate signifies you are impolite; so eat all the food you are served.

• Talking is impolite while eating dinner. Conversation is reserved for before or after the meal.

• Whenever your host/hostess enters the room it is polite to rise from your seat.

• Never eat while walking in public or chew on a tooth pick.

• It is inappropriate to yawn in public. If you must yawn, cover your mouth.

• Never touch anyone’s head, including a child’s head.

• Hats and sunglasses are to be removed when indoors.

• You should present each person you are meeting with a business card. When you offer your card it should be positioned so that the recipient can read it. Hold the card in your right hand and use your left hand to support your right wrist. The person receiving the card will take it with both hands.

• If you are talking with someone and you say “yes, but…” this means no.

Stacia Neilson Indonesia

Country Selection letter Stacia Neilson BIS Incorporated. 655 North Third Central Point, OR 97502 Phone (541) 494-6300 Job title- International Market Research Specialist February 13, 2012

Dr. Johnny Allen Hendrix Human Resources Director BIS Inc. 845 United Nations Plaza New York, NY 10017

Dear Dr. Hendrix

Foreign countries have always caught my interest, the differences from our home and where others live, can be so different. I love to go places and experience how other live their lives. Australia is the first country that came to my mind. A large portion of my family lives there and over Christmas break two of my cousins came to visit. While listening to us chatter over hunting, they brought up the issue currently being faced in Australia. More and more species are getting closer to extinction each year. There are 59 known animals on the verge of extinction and without immediate attention will join the 18 species that have gone extinct in the last 100 years. Without help from humans for protection, these animals will go extinct. While listening to them describe the main problems and reasons for the numbers decreasing, I started thinking of ways that help could be lent to the animals and country in need. The main problem they are having is other animals many of them not native, changing the habitat and making it hard for them to survive. If we could make facilities to breed these animals to then be released into the wild then it would help the numbers increase. Sections of land could be fenced off for when they are first released to monitor the population while they make their new homes in the wild. Not only could this help keep them safe but we could work to control the unwanted species to help their chance of survival.

My second choice is Indonesia; I have grown up listening to stories about where my family lived in Indonesia and even learned my family was royalty years ago. They are facing similar problems to Australia except their forests are going extinct. Certain species of trees are in great demand and are now being cut down illegally. The forests can’t keep up with the demand and are thinning out. To help, timber land could be sectioned off to help grow these trees. I would like to learn about their culture since a part of my family lived there.

Stacia Neilson Indonesia

My third choice is South Africa. My family owns Neilson Research and our main area of work is water testing. South Africa has and always has had a problem with safe fresh water sources. They need help to identify clean water sources and how to use it in the most conservative and positive ways. We can help to find clean sources and find ways to decontaminate other sources and doing so we could save millions of lives.

Thank you for your time and consideration on my country selection.

Sincerely,

Stacia Neilson