Brushing up HBR fundamentals will provide a strong base for investigative reading.
Are the two related? The impeachment of the Indonesian dictator Suharto is widely considered one of the most exciting political happenings of recent years. After dealing with inflation and a bad economic depression during the final year of President Sukarno in the early s, Indonesia experienced rapid and lasting economic growth for three decades under the New Order government of President Suharto.
The general view in Indonesia is that after the Asian economic crisis, the New Order brought economic ruin to the country. While Indonesia has since overthrown the dictatorial government, corruption and red tape remain rife at almost all levels of government in Indonesia.
A World Bank study revealed how excessive red tape in Indonesia hurts Indonesia case study activities: In turn, the excessive red tape translates into long lines of government bureaucrats, whose low salaries make it attractive for them to seek a bribe at every step of the business transaction, further distracting and detracting the entrepreneur from legitimate business pursuits.
In addition to these political factors, Indonesia also suffers from economics factors that hinder growth. A poor infrastructure in roads signifies that it is difficult to transport goods and services to the consumers, and may even hinder export-related businesses if companies cannot ship the finished intermediary or final products to their intended customers abroad.
The unreliability of the electric grid means that production and even administrative activities can be interrupted at any moment. Together, these inhospitable business climates decrease business confidence in Indonesia, leading to capital flight and a decrease in investments, shaking the very foundation of economic growth.
The political and economic factors that hinder growth in Indonesia are indeed intertwined. The unfriendly political environment makes it less likely that foreign or domestic capital would be interested in investing in Indonesia because of the business costs associated with red tape and corruption.
In turn, the lack in investment feeds the desire of government officials to continue to seek bribes and create red tape in order to supplement their low income due to a stagnant or slow-growing economy.
Why do you think foreign firms have been exiting Indonesia in recent years? What are the implications for the country? What is required to reverse this trend?
The economic front has also seen progress. Public debt as a percentage of GDP fell from close to percent in to less than 60 percent by Inflation declined from 12 percent annually in to 6 percent inand the economy grew by around 4 percent per annum during to During —07 Indonesia was struck by a series of natural disasters, including an earthquake and tsunami in Java in May and July and earthquakes in Sumatra in March and September Inflation started to reaccelerate inhitting 14 percent by year end.
Growth in labor productivity has been nonexistent for a decade. Some observers feel that Indonesia is hobbled by its poor infrastructure. Public infrastructure investment has been declining for years.
The tsunami that ravaged the coast of Sumatra in late only made matters worse.
Mirroring the decline in public investment has been a slump in private investment. Oil production has declined even though oil prices are at record highs. It is facing a humanitarian and environmental crisis that current domestic and international efforts do not adequately address.
However, corruption has gotten worse as institutions of democracy were still unstable during the critical transition Smith, Case Study Case study methods involve Systematically gathering enough information about a particular person, social setting, event, or group to permit the researcher to .
in Indonesia case study. personal income $ million added to real incomes in Indonesia by Chevron and our partners () job opportunities one chevron job supported an average of 36* other jobs in Indonesia *14 tier-1 supplier jobs, 9 extended supplier.
Background. In early , PLN, the state-owned electricity corporation of Indonesia, required a 20MW fast-track power solution for the island of Nias, a .
Excessive bureaucracy coupled with low wages and high unemployment further adds to this problem. As is noted in the case study, “It takes 51 days on an average to complete paperwork necessary to start a business as opposed to 30 days in Malaysia and 8 days in Singapore.
Humanitarian crises, emergency preparedness and response: Indonesia case study A field visit to Aceh Province undertaken as part of the study highlighted the need for a more inclusive. Case Studies Essay. in Year One you will be required to submit three case studies at module ten.
The learning outcomes and construction of the case study should follow the Chrysalis Marking and Grading Guidelines that have been supplied to you.