Country analysis for Indonesia

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Country analysis for Indonesia
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Executive summary
Indonesia as one of the strongest emerging markets in the South-East Asia with a
competitive and strong economic growth proves to be the best country for carrying out the
investment. The growth of the nation has had dependency on the relative exploitation of the
existing natural resources. This maintains the challenge to the balance of reducing the
emission of carbon by a relative margin of 26%. In the consideration of political stability and
situation, the leadership of the country has managed to encompass stability culture with
strategies that are counter-productive to the business culture. Integrative models show that the
leadership culture in Indonesia has undergone implementations with the incorporation of
democracy aspect to encompass different cultural differences. The investment opportunities in
every sector of the Indonesia investment industry offer a good investment potential. Minerals
and mining sector of the country has undergone improvisation to attract investments with
higher ratings. 
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Country analysis for Indonesia
Country’s Macro Environment
As one of the strongest emerging markets in the South-East Asia with a competitive
and strong economic growth, Indonesia proves to be the best country for carrying out the
investment. It is the world’s most populous ranked at number four, sized with archipelago of
17,000 islands across specified three time zones. It has the third largest democracy globally
with the majority of the citizens being Muslims. The country has an affluent middle class
consisting of 45 million people and still growing. The country is amongst the nations that
produce carbon in larger percentages with a major focus on deforestation. The projections
suggest that the energy sector is to replace deforestation following the aspect of causing
emissions1
.
Following the fall of the Suharto thirteen years down the line, Indonesia has proven to
have stability, vibrant free press, open democracy and an active civil society with an economy
that is rapidly approaching the grade of investment growing around 6% yearly. The country is
to be the middle-income country having an average per capita income amounting to $4,000 Pa
by the year 20152
. This is the representation of the beacon of stability in Asia. The country
has also strategized measures to counter the aspect of poverty following the introduction of
procedural measures to create employment opportunities through foreign investment in the

1 Machmud, Tengku Nathan. 2000. The Indonesian production-sharing contract: an investor's perspective. The
Hague, the Netherlands [u.a.]: Kluwer Law International.
2 Machmud, Tengku Nathan. 2000. The Indonesian production sharing contract: an investor's perspective. The
Hague, the Netherlands [u.a.]: Kluwer Law International. 
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production industry. The business environment of Indonesia is to counter the economic crisis
that may result into the breakdown of the country’s civil governance3
.
The country has been the target of various companies and private investors following
the strapping economic expansion. This is with a relative political stability that has given
people confidence in the general market framework. Indonesia has undergone an expansion of
the domestic product with more than 5% over the past few years. The provision of education
and health is undergoing modernization with a corresponding improvement in infrastructure.
The country is also in the verge of neutralizing the aspect of corruption, erratic rule of law and
weak institutions. The maintenance of competitiveness with the achievement of double-digit
growth forms the real take off foreign investment4
.
The growth of the nation has had dependency on the exploitation of the natural
resources that maintain the challenge to the balance of reducing the emission of carbon by a
relative margin of 26%. In the consideration of political stability and situation, the leadership
of the country has managed to encompass stability culture with strategies that are
counterproductive to the business culture. Integrative models show that the leadership culture
in Indonesia has undergone implementations with the incorporation of democracy aspect to
encompass different cultural differences. The leadership influence tactics are viewable from
the perspective of cultural and ethical aspects.

3 Machmud, Tengku Nathan. 2000. The Indonesian production sharing contract: an investor's perspective. The
Hague, the Netherlands [u.a.]: Kluwer Law International.
4 Asian Development Bank (ADB). (2007). Environmental Strategies in Country Operational
Strategy Study for Indonesia. Draft. Manila. 
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The economic fundamentals of Indonesia have remained to be strong following the
incorporation of inward foreign investment. The investment realized from the foreign
countries has climbed with a 50% incremen