Please answer the Following Questions : What is Indonesia Political system (Poli
ID: 432154 • Letter: P
Question
Please answer the Following Questions :
What is Indonesia Political system (Political parties, any political risk?)
Indonesia Trade environment (Major exports/imports; main trading partners; regional economies integration; tariff and trade barriers)
Indonesia Cultural Values for your specific country, using the values in the list below. If your country is not listed in the lists, you will have to act as an expert on your country and present your best opinion.
According to Hofstede’s Value dimensions…
How religion affects business operations in Indonesia
Communication: consider communication style, issues, and problem.
Direct or indirect? (High context or low context)
How does power distance impact the way people communicate to subordinates, bosses? This is not about power distance but communication.
Marketing issues: what do foreign managers need to know about marketing in this country?
Labor Relations
How are disputes resolved in Indonesia ?
How will a foreign manager have to adapt/change to labor in Indonesia ?
Negotiation Pattern
What is the basic process of negotiation in Indonesia ?
Do they haggle or start with one best suggestion? What is the pattern with regard to concessions?
What are likely to be the important issues during negotiations (in general)?
How long do negotiations take?
Explanation / Answer
Political sysytem in Indonasia: Indonasia is secular country and in the sense that political policies are not necessarily derived from religious activities.
Indonasia nationals are obliged to opt for any one of religions that selected by government.
Being a largest muslim population in world ,muslim principles play crucial role in political decion making.decentralisation of political power in post-suharto era made regional political parties has became more decision making bodies in national politics.
However dominance of muslim majority in nation,as a whole Indonasia is mulim oriented.So electing of non-muslim president is impossible.On the other hand Indonasia muslims are labelled as 'moderate',as a majority of Indonasia muslims are nominal muslims.
For example Indonasia muslims would not accept the implementation of islamic law(sharia).
The Indonasia political system consists of three branches,
1)Excutive branch
2)Legislative branch
3)judicial branch
1)Excutive branch:Excutive branch consists of president and vice president,cabinet for a period of 5 years. The trio remain imseparable through that 5 year. This shows the strong excutive branch of Indonasia. Important matters that are influenced by the ethinic and social backround.
In Ethinic background,javanese musim catagory enjoys the majority of support of javanese muslim to form the nation potical system.mean while the local political bodies formed by the local religious population.
In social background includes the army personals,bussiness people,technocrats etc... so the president and vice comes from different social background.
Legislative branch:
indosia legislative branch is peoples consultative assembly.It has power to set or change constitution and appoint (to impreach) president.Peoples representative assembly consisits of peoples representative council and regional represetative council.
Judicial branch:
higest court in indonasia judiciary sysytem is Independent supreme court.It solves the disputes between the lower courts.
It moniters the decisons made by parliament in line with the Indonasia constitution.
TRADING ENVIRONMENT IN INDONASIA:
Indonasia is world's largest economy in world,projected as 4th largest economy(ppp)by 2050.
Major exports :
Palm oil ($13.9B)
coal briquetts($13.6B)
petroluem gas($7.35B)
crude petroluem ($5.04B)
rubber($3.74B)
Major imports:
Refined petroluem ($9.6B),
Crude petroluem ($5.6B),
Telephones($3.54B),
Vehical parts($2.42B),
Planes ,Helicopters and space crafts($2.15B).
MAIN TRADING PARTNERS:
Exporting destinations are
United states of america($19.5B),
China ($18.6B),
Japan($17.5B),
Singapore($13.3B),
India($11.3).
IMPORTING ORIGINS:
China ($31B),
singapore($15.2B),
Japan($12.1B),
thailand($8.46B),
Malaysia($7.17B).
REGIONAL ECONOMIES INTEGRATION:
Indonasia facing trade liberalisation and regional economic integration with several free trade regions i.e bilateral FTA,multilateral FTA,regional FTA.
Indonasia gains significant benifit interms of real GDP,output and welfare except FTA with India,
FTA increases the the income of rural group compared to the urban group.unskilled labour gets benifits than skilled labour and poorer house holds gets aregetting more benifiting than richer in both rural and urban.
INDONASIA CULTURAL VALUES FOR THE VALUES LIST BELOW:
communication:
Passive communication strategy of javanese way for harmony and relations ships with communinity building were found to be influencial to indonasian bargaing strategies ang decion making.
Bargaing strategies are are always dustributive .these disributive bargains always miscontrutive by international managers .in order to maintain bussiness policies international managers need to focus on the relation ship strethening in order to strenthening bargaing positions.
labor relations:
Being constitutional body the indonasian labor consists of labor laws.The labor peiople in indosia form the unions which are very common in many countrie sinteh world.
by using labor laws foriegn managers can solve the issues and disputes with the labor unions.
NEGOTIATION PROCESS:
Negotiation procee in indonasia considered as thecomplicated system of communication and decision making protocals.where contexually embedded cues and symbols are critical to the succesful navigation to the negotiation.
patterns of communication process is the keys form of the negotiation process and embedded with in the hirarchial business and social engagements.