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Indonesian Textile Industry

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Indonesian Textile Industry
Indonesian Textile Industry
Sarju Patel
Jones International University
Leading from a Global Perspective
BC607
Dr. Miro Smriga
June 25, 2014

Indonesian Textile Industry

Executive Summary
Expansion of our textile manufacturing capabilities in emerging markets is a key strategic imperative for our organization. After careful review, it is recommended that we expand textile manufacturing to Indonesia. Investment in Indonesia does pose risks; however, these are outweighed by the numerous benefits that Indonesia offers for foreign direct investment (FDI).
Indonesia offers a growing middle class, a stable political situation, strong domestic demand, as well as conservative macroeconomic policies. It is the world’s fourth most populous nation with approximately 235 million people where roughly half of the population is under the age of 30. In addition, English is the most widely spoken foreign language in Indonesia and it is commonly used in business. The strong economic performance of Indonesia has brought it recognition from global investment banks such as Goldman Sachs and economic analysts including the Economist as one of the world’s most important and dynamic economies. Indonesia is an open-market economy with a free foreign exchange regime. It also has abundant natural resources and commodity products. Indonesia belongs to numerous international organizations including the World Trade Organization (WTO), World Customs Organization (WCO), and the World Intellectual Property Organization (WIPO).
The Indonesian textile industry is expected to remain a major contributor to the economy in the future. One of the leading reasons is that Indonesia has some of the lowest wages among ASEAN member countries and a literacy rate of about 90%. The Indonesian textile industry is one of the oldest and most strategic industries of the country, contributing significantly to national growth. Indonesia’s textile and clothing industry provided approximately


References: 2013 Investment Climate Statement - Indonesia. (2013, January 1). U.S. Department of State. Retrieved June 24, 2014, from http://www.state.gov/e/eb/rls/othr/ics/2013/204660.htm "Acicis – Dspp" Business Culture in Indonesia. (2013, January 1). Doing Business in Indonesia. Retrieved June 24, 2014, from http://www.worldbusinessculture.com/Business-in-Indonesia.html Economy Rankings GBG Indonesia. (2014, January 1). GBG Indonesia | Global Business Guide Indonesia. Retrieved June 24, 2014, from http://www.gbgindonesia.com/ Hill, Cameron (28 March 2014) Indonesia - Cultural Etiquette . (2014, January 1). Indonesia - Cultural Etiquette - e Diplomat. Retrieved June 24, 2014, from http://www.ediplomat.com/np/cultural_etiquette/ce_id.htm Industry Profile Investing in Indonesia. (2014, January 1). . Retrieved June 24, 2014, from http://www4.bkpm.go.id/ Political and Economic Environment U.S. Relations with Indonesia. (2014, February 3). U.S. Department of State. Retrieved June 24, 2014, from http://www.state.gov/r/pa/ei/bgn/2748.htm
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