Indonesia's remarkable economic and social achievements, amidst incredible cultural diversity and complexity, have motivated the World Bank to herald this sprawling archipelago of 200 million people as a model developing economy. Driven by an agenda of massive market reforms and deregulations, the government is undeniably committed to the country's sustainable global competitiveness in the 21st century. In Business Opportunities in Indonesia, the ninth volume in the Nanyang Business Report Series, the editors profile the vast business environment emerging within this newly awakened giant.
This book is comprehensive, but practical, in focusing on new reforms spanning manufacturing and trade, foreign investment trends and bold initiatives in the financial, petroleum and banking sectors. Distribution, advertising and marketing issues are uniquely integrated across Indonesia's socio-cultural sensitivities together with the important area of dispute resolution.
As an indispensable member of ASEAN, APEC and other regional economic partnerships, Indonesia is becoming a pillar of economic strength and competitive advantage. Business Opportunities in Indonesia is an essential reference for potential international investors and global entrepreneurs, professional and government agencies, researchers and students.
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TAN Teck Meng is Professor and Dean at the Nanyang Business School. Professor Tan has been instrumental in nurturing the Nanyang Business School towards world class status with specialised undergraduate business degrees, MBA programs and the Ph.D. (Business) programs, leading to a top ten Business School ranking in Asia and Australia by Asia Inc. In addition to other publications, he is responsible for editing the Nanyang Business Report Series (Prentice Hall), and is Editor-in-Chief of the 14 book Singapore Development Series (Addison-Wesley) and the Journal of Enterprising Culture.
LOW Aik Meng is Associate Professor and Director of the MBA programme at the Nanyang Business School. He is currently Vice Dean at the Nanyang Business School and has been the Director of its very successful MBA programme since its inception in 1991. Under his leadership, the MBA programme has been building a network of contacts with businesses and government bodies in Singapore and overseas. He spearheads the thrice-nearly Business Study Mission which are an integral part of the MBA program.
John J. WILLIAMS is Associate Profesor at the Nanyang Business School and Chief Coordinator of the MBA Business Study Misison Programme. He has taught and carried out research projects in several countries including Canada, the U.S., Kenya and Singapore. Dr. Williams has published extensively in leading academic and professional journals and he continues to pursue the study of emerging regional economies in the ASEAN region.
CHOO Teck Min is Senior Lecturer and Deputy Director (Academic) of the MBA programme at the Nanyang Business School. Dr. Choo was the Chairperson of the MBA Business Study Mission to Indonesia. He has published in local and international journals such as the Singapore Accountant, the Securities Industry Review , the Singapore Management Review and the Managerial Auditing Journal.
From Chapter 1:
The REPUBLIC of Indonesia is a composite of over 17,500 islands which stretch from just west of Peninsular Malaysia along the equator some 5,000 kilometres to the northeast coast of Australia. Since 1985, the economy has been growing at more than 7.5% annually. The engines of this growth have been the efforts of approximately 200 million people from over 300 culturally diverse backgrounds, practising four major religions and geared to the fundamental cornerstones of the Indonesia Government which are grounded in unity, tolerance, equality and social harmony (INDIO, 1996) Indonesia is rich in natural resources and people. And, with the shift in economic development from heavy reliance on the oil and gas sector to the burgeoning manufacturing sector, nurturing substantial flows of foreign investment and welcoming the transfer of new technologies, Indonesia has awakened on the economic frontiers of the global economy. The Sixth Five-Year Development Plan (Repelita VI) unveiled in April 1994 promises to move the country even closer to the competitive standards demanded by the global economy. Nonetheless, there are challenges and issues looming on the distance which investors need to comprehend top take full advantage of the benefits which Indonesia offers. This chapter sketches a few of the major developments which have contributed to Indonesia's current status and then outlines the directions taken in the remaining chapters.
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