The Information Technology landscape in Indonesia

Analysis : Impacts on the business
AboutIndonesia  As a company doing business in Indonesia, investors should be concerned with the political unrest of the country which can effect their company.  In addition, the high software piracy rate tells a little about the warning signs of doing business as an outsider.  But at the same time, there is a great optimism about the slow growth and improvement of the country's infrastructure. 

Many developed countries are pouring in investments into Indonesia in possibly making it into another Singapore. Thus the close vicinity to the other markets such as Singapore, Hong Kong, Malaysia, etc. will help lure other multinationals into Indonesia.  Though the infrastructure as a whole is somewhat weak, it still has plenty of cheap resources, particularly the human resources. 

For Indonesia to prosper, multinationals need to remember the importance of giving back to the community by supporting various government programs as well as taking initiatives for a
grass-roots approach.  This is important since we need to remember that Indonesia is still considered a third world country.  Therefore, it would not be a good idea to go all out just yet in putting all the marbles into Indonesia, but piece by piece building on one aspect of the company at a time, realizing the strengths and weaknesses of the country.

The manufacturing possibility in Indonesia is looking better, now that Indonesia realizes the importance of reaching parity with other growing East Asian Economies.  The improvement of technology in regards to telecommunication infrastructure is high on Indonesia’s agenda.  While the infrastructure is slowly getting better, businesses should take advantage of the relatively high literacy rate (85%) of Indonesian workers.  In addition, the wealth of human labor at cheap prices should spark interest to manufacturing type businesses.  Furthermore, the government of Indonesia is encouraging foreign investors to put money into the country, and in return, these investors are given tax incentives.  The government is also interested in labor extensive businesses that will hopefully reduce the unemployment rate in Indonesia. 
 
 
 
 
 

 

Telecommunication
Infrastructure
Privatization and Deregulation
Hardware manufacturing
E-Commerce 
Software development
IT Usage
(bymilitary, households and Labor)
IT Geographics
IT Financing
IT Labor Market
Government Policies
Legal Environment
Analysis : IT Strengths/ and Weaknesses
Analysis :Impacts on the Business
Sources and Links
About the authors

 

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Last update: December 16, 1999