Presentation for Global Market class

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MKT 474

4/7/2018

Indonesia

1. Language, Communication, and Social Value.

· Language: Bahasa Indonesia is the mother tongue and the official language in Indonesia but only 7% speaks it in Indonesia and the rest of the population speak 300 different native languages.

· Unspoken Language: Gestures; Touching your chest after a handshake. receiving things with your right hand.

· Values and attitudes: Islamic Value: including Islamic law, because the majority are Muslim in Indonesia people need to know the Islamic law and rules. Indonesian Value: including all believe people should treat each other equally with respect to their religion and be proud to be Indonesian.

· Material Culture: Rattan and wood are the most cherished material in Indonesian culture, example chair, and furniture.

2. Religion

· Islam: In 2010, Indonesian Muslims populated 87.18 % of Indonesia population. 6.96% Protestant, 2.91% Catholic, 1.69% Hindu, 0.72% Buddhist, 0.05% Confucianism, 0.13% other, and 0.38% not stated.

3. Education and Literacy

· Education Level: 12 years studying within it primary, junior secondary, and upper secondary.

· Education System: The first 6 years is compulsory to all. The junior secondary is three years and the upper secondary is also three years.

· Literacy Levels: 95.4% in 2015

4. Social Structure and Lifestyle

· Ethnic Profile: Javanese group are the largest group populating 40% of the population and they come from the first main categorial group of three. The first main group called the inland wet-rice, second main group called the coastal trading, and thirdly the inland societies of shifting cultivators.

· Individual vs. Group: the population is affected by groups. Indonesia has so many groups and subgroups that affect how people live their lives. Because of that 60% of the population are farmers.

· Class System: as I said 60% of the population are farmers and therefore the majority of the population to be considered in a low class in society.

· Food & Dietary Preferences: traditional food is steamed rice surrounded by vegetables with either fish or any kind of meat. Examples, Nasi goreng and other food like Satay, Bakso, and Soto.

· Social Mobility: It is difficult to move higher in government position because of the government corruption and low economy.

· Key Holy Days and Holidays: mostly public holiday like new year, Idul Fitri Day 1, and Eid al-Adha. Others like Hindu Holiday, Season, Observance, and joint holiday. The national holiday is Pancasila Day in Friday, June first.

5. Economic Profile and Financial Facts

· Currency: rupiah. Exchange rate: 1 USD = 13,743 Rupiah or 1 Rupiah = 0.00070 USD

· The rate of Inflation: The average is 3.81 % in 2017.

· Trade Balance: Export: -3,43%. Import: -6.01%. Total: -4.71

· Key Economic Sectors: tourism, chemical fertilizers, cement, apparel, natural gas, footwear, mining, plywood, rubber, food, petroleum, textiles. 18.6% of the total workforce is provided to employees.

· Affiliations: PDI-P, Traditional Islamic (PKB+PPP), Modernist Islamic (PKS+PBB+PAN+PPP).

· Gross National Product per Capita: 1,769.42 USD in average in 2016.

· National Population: 263,991,379 in 2017.

6. Political Philosophy

· Head of Government: Joko Widodo is head of government and state. Indonesia is a presidential representative democratic republic.

· Political Parties: Secular Parties: Democratic Parties, Golkar (Party of the Functional Groups), PDI-P (Indonesian Democratic Party-Struggle), Gerindra (Great Indonesia Movement Party), Hanura (People’s Conscience Party), PKPI (Indonesian Justice and Unity Party), NasDem (Nasional Demokrat). Islamic Parties: PKS (Prosperous Justice Party), PAN (National Mandate Party), PPP (United Development Party), PKB (National Awakening Party), PBB (Crescent Star Party)

· Parliamentary System: April 9, 2014

· Legal Protections for Workers:

· Trade Union: Indonesian Workers Welfare Union, Trade Union Confederation, KASBI.

7. Geography and Topographical Influences

· Land Area: 735,400 mi² or 1,904677 km2

· Climatic Condition: The humidity in the area is usually high between 90 down to 70. The area splits by the equator. Its average 28°C in coastal plains and 26°C in the inland and the mountains but in the higher mountains its average 23°C.

8. Business Culture and Etiquette

· Hall: High context culture, complex unspoken rules.

· Hofstede: Power Distance: 78 (high), Individualism: 14 (low), Mas: 46 (low), Uncertainty: 48 (high), L-Term Orientation: 62 (high)

· World Bank Ease of Doing Business: 72 of 190

· Transparency International Index of Corruption: 96 of 180 in 2017

· Etiquette: receiving things with your right hand. No public humiliation.

References

http://www.inflation.eu/inflation-rates/indonesia/historic-inflation/cpi-inflation-indonesia-2017.aspx

http://www.worldometers.info/world-population/indonesia-population/

https://asian.washington.edu/fields/indonesian

http://factsanddetails.com/indonesia/People_and_Life/sub6_2a/entry-3988.html

https://factsofindonesia.com/indonesian-core-values