Inflation and Indonesia

3618 words 15 pages
PESTEL analysis of Indonesia | October 3
Hitesh GoyalNirupan ChakravarthiSainath.V MBA 12 and PGPRM-9 | |

Indonesia is one of the largest countries in South-east Asia, between the Indian Ocean and the Pacific Ocean which contain mainly mountainous and covered with rain forests, swamps and consists over 13000 islands. Jakarta is the capital of Indonesia. Indonesia declared its independence on 17th August 1945 from Japan but Netherlands agreed to transfer sovereignty in 1949. Susilo Bambang is the President and Muhammad Yusuf Kalla is the Vice-President of Indonesia. Bahasa is the official language in Indonesia which modified form of Malay but the most widely spoken language
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Import: Due to change in population, income, import and export in Indonesia are increasing every year. The total import in 2008 was $125 billion compare to $85.26 billion in 2007. The major import commodities are machinery, equipment, chemicals, fuels and foodstuffs. The major import partners are Singapore 16.9%, China 11.8%, Japan 11.7%, Malaysia 6.9%, US 6.1%, South Korea 5.4%, Thailand 4.9% (2008)
Export: In the same way due to economic growth improvement in productivity, government policies, export is also increasing rapidly. It was $93.3 billion in 2008 compare to $83 billion in 2007. The major export commodities are oil and gas, electrical appliances, plywood, textiles and rubber. The major export partner countries are Japan 20.2%, US 9.5%, Singapore 9.4%, China 8.5%, South Korea 6.7%, India 5.2%, Malaysia 4.7%.
Balance of payment: The current account balance of Indonesia is $7.1million which was $8.8 million in 2008. The government spending has increased due to the country trying to alleviate widespread poverty and well being of the country. The government revenue has over doubled in the past 4 years while spending has increased by 3 times.

Social factor:
Population: Indonesia has a large population, which is increasing at a steady rate. It is on the 5th position all over the world with total 240,271,522 populations which is growing at 1.13%. The birth rate in Indonesia is 18.84births/1,000 and the mortality rate is 29.25 deaths/1,000 populations. The total


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