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A Cultural Beauty

A Potential Global Market



INDONESIA




                            DIKKA KARTIKA
GENERAL INFORMATION
•   Located in South East Asia, contains 17,508 island
•   ASEAN Founder
•   Population: ± 237,424,363
•   Member of WTO, OPEC, APEC




           National Motto: Unity in Diversity
Did you know?
Indonesia is United States’ 28th largest trading partner with
                 $23.4 billion goods trade
A DIVERSE NATION
• Ethnicity: 300 ethnic (Javanese, Sundanese,
  Malays, and other smaller ethnic groups)

• Languages: ± 700 local languages
             national language: Bahasa

• Religion: Islam, Catholicism, Protestantism,
           Confucianism, Hinduism, Buddhism
POLITICS

• Nation form: Republic – Presidential

• Government Branches:
  - Executive
  - Legislative
  - Judicial

• Current President: Susilo Bambang Yudhoyono
ECONOMY
• GDP = $834 billion

• Economic growth level = 6.5%

• National Currency : Indonesia Rupiah (IDR)
  I USD = 9,238.00 IDR
TRADE REGULATIONS
• Import Food need certification of radiation
  degree and standards of Islamic purity from
  Indonesian Department of Health




• Indonesia established the anti-dumping
  regulation
• 41% stocks of airplanes company can be
  owned by foreign company

• no limitation on foreign ownership in
  automotive sectors
Indonesian 10 EXPORT COMMODITIES
• Textile, including Batik   •Rubber and Article
                             Rhereof




• Electronic                 • Palm Oil
• Forest Products   • Automotive




• Footwear          • Shrimps
• Cocoa




• Coffee




           Oprah with Indonesian Civet Coffee
BATIK
• Has officially recognized by UNESCO as
  Indonesia culture heritage

• Unique techniques to make batik:
  - Hand-waxed (hand-drawn)
  - Hand-stamped
  - Combination of the two techniques
Different design has different meaning
Batik Photos
MARKETING METHODS
• Entering market through export in small scale

• Building partnership with local retails

• Enlarging market through acquisition with well-
  developed local company

• Advertise products through social media
MANAGE INVENTORY

• Usage of just-in-time inventory

• Lean synchronization technology

• Maximize item-location policy optimization
BUSINESS CULTURE
• High-context culture
  - heavily rely on nonverbal communication)
  - sometimes people are hard to say no directly

• Cheaper wage rate comparing to US

• Is not really discipline toward time
• Religion ceremony and celebration affect work
  hours and become national holiday

• Women are gladly welcomed to work

• Children under-age is not allowed to work

• Javanese culture has several layers formality of
  language
“ in global
  business, it is
important to know
whom you partner
     with. “



   -thank you-

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Dikka kartika bus245 final presentation

  • 1. A Cultural Beauty A Potential Global Market INDONESIA DIKKA KARTIKA
  • 2. GENERAL INFORMATION • Located in South East Asia, contains 17,508 island • ASEAN Founder • Population: ± 237,424,363 • Member of WTO, OPEC, APEC National Motto: Unity in Diversity
  • 3. Did you know? Indonesia is United States’ 28th largest trading partner with $23.4 billion goods trade
  • 4. A DIVERSE NATION • Ethnicity: 300 ethnic (Javanese, Sundanese, Malays, and other smaller ethnic groups) • Languages: ± 700 local languages national language: Bahasa • Religion: Islam, Catholicism, Protestantism, Confucianism, Hinduism, Buddhism
  • 5. POLITICS • Nation form: Republic – Presidential • Government Branches: - Executive - Legislative - Judicial • Current President: Susilo Bambang Yudhoyono
  • 6. ECONOMY • GDP = $834 billion • Economic growth level = 6.5% • National Currency : Indonesia Rupiah (IDR) I USD = 9,238.00 IDR
  • 7. TRADE REGULATIONS • Import Food need certification of radiation degree and standards of Islamic purity from Indonesian Department of Health • Indonesia established the anti-dumping regulation
  • 8. • 41% stocks of airplanes company can be owned by foreign company • no limitation on foreign ownership in automotive sectors
  • 9. Indonesian 10 EXPORT COMMODITIES • Textile, including Batik •Rubber and Article Rhereof • Electronic • Palm Oil
  • 10. • Forest Products • Automotive • Footwear • Shrimps
  • 11. • Cocoa • Coffee Oprah with Indonesian Civet Coffee
  • 12. BATIK • Has officially recognized by UNESCO as Indonesia culture heritage • Unique techniques to make batik: - Hand-waxed (hand-drawn) - Hand-stamped - Combination of the two techniques
  • 13. Different design has different meaning
  • 15.
  • 16. MARKETING METHODS • Entering market through export in small scale • Building partnership with local retails • Enlarging market through acquisition with well- developed local company • Advertise products through social media
  • 17. MANAGE INVENTORY • Usage of just-in-time inventory • Lean synchronization technology • Maximize item-location policy optimization
  • 18. BUSINESS CULTURE • High-context culture - heavily rely on nonverbal communication) - sometimes people are hard to say no directly • Cheaper wage rate comparing to US • Is not really discipline toward time
  • 19. • Religion ceremony and celebration affect work hours and become national holiday • Women are gladly welcomed to work • Children under-age is not allowed to work • Javanese culture has several layers formality of language
  • 20. “ in global business, it is important to know whom you partner with. “ -thank you-