Topic: BusinessIndustry

Last updated: March 26, 2019

Indonesia is an islands country .Consist of more than billions of islands. The most populated islands is the Java islands is home to Jakarta, the capital city Jakarta is also the most populated city in Indonesia. It is the, and main central of media, governments, and imported goods. Indonesia has various kinds of religious and the government recognizes Islam, Christianity, Gong Fu Chou, Buddhism, and Hinduism as the official religious.

The largest religion is Islam and Indonesia holds the most Muslim community in the world. There are many tribes in Indonesia; they’re unique in their own way. Indonesia is a developing country, although there are many rich people in Indonesia, but there are far poor people that have low income. Indonesia is also suffering corruption and bribery.Indonesia has been known to share the same common goals as the United States as both the countries firmly support a vast and diverse country. The three goals shared are democratization, sustainable economic growth, and territorial integrity (Gelbard, 2000). Democratic government and economic well- being are the most effective guarantors of domestic stability. Potentially, the success of these three goals in Indonesia could translate into great stability in Southeast Asia.

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Indonesia’s main constraint to a successful future is the corruption that occurs throughout the country. It is said that although the dictator leadership has been removed. Corruption is still very much alive throughout the legal entire system, including the police and the prosecutor’s. (Hill, 2013). Corruption is so endemic in Indonesia.

Government salaries are too low so people working in these positions are more inclined to take bribes. The police and prosecutors are also involved in the bribes making it very hard to stop such things from occurring by catching the officials. This turns many people away from trying to start their own business as it takes on average 151 days to do. It also turns away from many foreign investors as they do not want to partake is such as long and costly process to enter market. All of this in turn has a negative effect on the economy and the people who live in Indonesia.

Corruption occurs most commonly in Indonesia thought the form of bribery. Although Indonesia does have anti-corruption policies and procedures in place. It is reported that the politically elite are included in bribery schemes so frequently that the polices and procedures lack any follow through. Additional constraints in achieving the countries goals and alleviating the central issues are poor infrastructure, environment disaster, and red tape for business Alternatives to Alleviate the Central Issues. While there are many potential paths that can be used as alternatives the central issues in Indonesia, the following must be addressed; eliminating corruption, bettering the country’s infrastructure, and promote internal and external investment into the country.

Beginning with eliminating the corruption, as an first alternative to allowing it to continue and negatively affect the political and economic divisions as it does today, the ideal would be to align supporters of the offenders that are still participating in corruption laws and are willing to enforce them for the good of the country.The second alternatives to alleviate the central issues in Indonesia would be focusing on bettering the infrastructure of the country. The conditions of the country are poor at the best with horrible road system and little to no access to electricity or modern sewage. Furthermore, the tsunami that hit the coast of Indonesia in late 2004 only made these matters to worse. As public investment to improve the country’s infrastructure has declined, so have private investments.

Indonesia must create a budget to allow the public investment to begin to increase again to help stabilize the infrastructure of the country, and in turn will draw in private investment as well to assist with rebuilding the infrastructure of the country. Best alternative more chance and great success arise.Stabilization and development in Indonesia should remain the primary focus in order to help alleviate the central issues of the country.

The main alternatives to address would be the corruption that occurs within the Indonesia and implement policies to help reduce the bribery while monitoring and punish those who are participating in bribery acts. As Indonesia stands now, although there is already a drive to alleviate corruption but the political officers that do not support them continue to participate in bribery and other forms of corruption. According to estimations by the World Bank, their organization lost $48 billion to corruption in Indonesia between 1977 and 1997. As the country begins implementing correcting practicing anti-corruption laws and properly punishing offenders, the economy will begin to see a fluctuation in excess cash flow with will create a waterfall effect to help rebuild the economy and infrastructure of the country. Once the country begins showing signs of economic and political reform, the country itself will open up more opportunities to rebuild relationship with foreign investors, such as private investors in the oil industry that could potentially help Indonesia restore its status as an exporter of oil.

Implementation Plan. In the case of Indonesia and their turmoil at this point in time, it has been evaluated that there is not safe road to economic and political stability except economic development ; rather a development program must be launched which permit significant increases in per capita consumption over a short period of time, while at the same time accumulating capital and changing the structure of production so as to provide a permanent solution to the balance of payments problem and to launch a process of continuous economic growth (Higgins, 1957). The following are the key components that must be addressed and repaired before Indonesia has any chance at being successful prosperous country.

First and foremost, Indonesia must eliminate the issue of corruption at the source within the political parties. Indonesia exists in an environment having established anti-corruption laws with a single anti-corruption agency, limiting the consequences and punishment for acts of corruption. Indonesia must implement an action plan such as Singapore and Hong Kong as they have succeeded in minimizing corruption and rebuilding their economy.

Again, this would entail commitment of political leaders, updating policy context to be more favorable, and impartial implementation of effective anti-corruption measures.As the corruption issues begin to be regulated and stabilized, further development can be focused on within the country. Cash flow will be greater as less money will lost in bribery and will be able to be recounted to development of the country’s infrastructure. As Indonesia begins to rebuild its political and economic front, the country will become more appealing for international organizations. As private investment’s increase, one can anticipate that public and international investments will also increase. However, the red tape for business that are in placed now will need to be evaluated and potentially redefined to help streamline new business development in Indonesia.

As the necessary changes are implemented, Indonesia will also be able to strengthen the exports of their natural resources. They will begin to rely less on imports as they rebuild their manufacturability, in turn increasing their exports as well as profits from exports. This again will be a function of opportunity for foreign investments and will help strengthen foreign relationship foe international business. All in all, without these measures being taken, Indonesia will remain a country in debt, run by corruption with a failing economy. These changes are required for a successful future for Indonesia both internally within the country and externally within foreign international business.


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