Ifp Indonesia and the Business Model
NTRODUCTION
Indonesia is a rich country with its resources. Not only oil and gas, but Indonesia also had been a producer of mining and agricultural products such as rubber, tin, tea, coffee, spices and timber. In 2002, timber is one of the key export for “non-migas” (non oil and gas) commodities to provide foreign trades.
IFP, Indonesia is one of foreign timber logging operate in Kalimantan (Borneo) island. With Kristin Daniel as the planner manager since 2001. IFP Ltd did business more than 25 countries in the world but Indonesia is the only one country it has business in South East Asia.
The company has original business in trading coal, metals and shipping industry.
SWOT ANALYSIS
Strength
The company use simplest technology and labour work intensive. Where support government program, to increase more workforce.
Weakness
IFP only can transfer timber in a small vessel in order able to crossed Indonesian river from forest to open sea.
The forest in Kalimantan are old long period vegetation which the form of the trees are no longer similar each other. These conditions reduce the commercial yield rates and increase the cost.
In Europe common hardwood resources are no longer able to compete with domestic and African products.
Opportunity
Low worker cost as much as USD 4 per day
The location of trade: ocean trade going from Far East to west part of Asia always gone trough Indonesia straits.
Indonesia as a big supplier to western countries, with nearer distance compare to China and Japan.
Threat
Local population increasingly pressing the government to give sanction against foreign lumber companies
Indonesian government and its corruption make it a very difficult Nation to do business.
Weak local government, corruption and harassment at the local were not uncommon. This situation make the investor have no confident to invest their money to expand the business.
Infrastructure investment is highly required in order the company
Indonesia is a rich country with its resources. Not only oil and gas, but Indonesia also had been a producer of mining and agricultural products such as rubber, tin, tea, coffee, spices and timber. In 2002, timber is one of the key export for “non-migas” (non oil and gas) commodities to provide foreign trades.
IFP, Indonesia is one of foreign timber logging operate in Kalimantan (Borneo) island. With Kristin Daniel as the planner manager since 2001. IFP Ltd did business more than 25 countries in the world but Indonesia is the only one country it has business in South East Asia.
The company has original business in trading coal, metals and shipping industry.
SWOT ANALYSIS
Strength
The company use simplest technology and labour work intensive. Where support government program, to increase more workforce.
Weakness
IFP only can transfer timber in a small vessel in order able to crossed Indonesian river from forest to open sea.
The forest in Kalimantan are old long period vegetation which the form of the trees are no longer similar each other. These conditions reduce the commercial yield rates and increase the cost.
In Europe common hardwood resources are no longer able to compete with domestic and African products.
Opportunity
Low worker cost as much as USD 4 per day
The location of trade: ocean trade going from Far East to west part of Asia always gone trough Indonesia straits.
Indonesia as a big supplier to western countries, with nearer distance compare to China and Japan.
Threat
Local population increasingly pressing the government to give sanction against foreign lumber companies
Indonesian government and its corruption make it a very difficult Nation to do business.
Weak local government, corruption and harassment at the local were not uncommon. This situation make the investor have no confident to invest their money to expand the business.
Infrastructure investment is highly required in order the company