2. Profil State
Country Name : Israel
Form of Government : Parliamentary Democracy
Government System : Parliamentary
Legislative Body : Knesset
Head of State : Isaac Herzog (President)
Head of Government : Naftali Bennett (Prime Minister)
Capital : Jerusalem (de jure), Tel-Aviv (de facto)
Currency : Shekel
Independence Day : 14 May 1948 (under British administration)
Location : West Asia Continent (Middle East Region)
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3. Economic History
Many companies were built in various areas between 1920 and 1924, several large factories were
established including the Shemen Oil Company, Palestine Silicate Company, and Palestine Salt Company.
In 1937, there were 86 spinning and weaving factories in the country, which later became an icon of Israel's
textile industry, which was founded in 1934. In 1960 textiles was one of the largest industrial branches in
Israel, second only to the foodstuff industry. About 12% of textiles are exported from industry and become
the second largest export branch after polished diamonds. The Israel economy survived the recession of the
late 2000s, and also recorded positive growth in 2009 and ended the decade with a low unemployment rate
and recommends separating the activities of deposit banking and investment banking particularly in the
United States.
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4. Government System
Under parliamentary democracy, the Prime Minister of Israel is the head of government. The executive
power is held by the government and the legislature is held by the Knesset (Israel's Parliament), and the
Judiciary is independent from the executive and legislature where Israel does not have a written
constitution. The Prime Minister, is the most powerful political figure in Israel. The prime minister is
appointed by the President on the recommendation of party representatives in the Knesset. The Prime
Minister is authorized to make domestic and foreign policies which will then be determined by the cabinet.
The Knesset is based in Jerusalem and consists of 120 members who are elected for a term of 4 years
through party list proportional representation, as mandated by the 1958 Knesset Basic Law. Parties select
candidates using a closed list, so that only their own party is selected, not specific candidates.
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5. Leading Industry
Israel is also a country where technology companies thrive. In the 1980s many people working in Silicon
Valley immigrated to Israel. Although already living in Israel, these Jews established research and
development centers for US technology companies, such as Microsoft, IBM, and Intel. Thus Israel recorded
a technology industry growth of 8% per year, where many new companies in the technology sector emerged
so that this condition made Israel's research and development ranking always occupy the top 10 in the
world. Nearly 80% of technological products were exported from Israel from 1991 to 2006, or the
equivalent of US$ 29 billion. Quoted from the World Bank, Israel's total gross domestic product (GDP) in
2019 was recorded at US$ 394.65 billion.
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6. Diplomatic Relationship
Israel has diplomatic relations with 164 of the 192 United Nations countries, meanwhile Indonesia and
Israel do not have diplomatic relations because of the conflict between Israel and Palestine, where
Indonesia will not normalize the relationship until there is a lasting peace between Israel and Palestine.
Although there are no official diplomatic relations between Indonesia and Israel, both of them have trade
relations that are imported from Israel to Indonesia amounting to US$ 345.45 million until 2020.
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