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Inflation and Indonesia

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Inflation and Indonesia
PESTEL analysis of Indonesia | October 3
2009
| SUBMITTED TO: MR. SUNDERASAN SUBMITTED BY:
Hitesh GoyalNirupan ChakravarthiSainath.V MBA 12 and PGPRM-9 | |

Introduction:
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 is Javanese. 88% of Indonesians population is Muslim. It has a very large trading environment, with several countries ranging in products from gas to textiles. 22% of its population live below poverty line. (CIA- the World Fact book)
PESTEL Analysis:
Political and Legal factors:
Indonesia is considered as Republic country. It declared its independence on 17th August 1945 from Japan so 17th August is the national holiday. Indonesia’s legal rules and regulations are based on Roman-Dutch law. Their constitution has abrogated by Federal Constitution in 1949 and Provisional Constitution abrogated in 1950 which restored on 5 July 1959.
Political stability: In Indonesia after every five year election is being contested for president and vice president post by direct vote of the citizenry. Last time it was held on 8 July 2009 (next to be held in July 2014). Susilo Bambang has elected as president and Muhammad Yusuf Kalla is the Vice-President. Similarly, Cabinet also appointed by the president. So for next 5 years there are more chances of stability of the government.
Labour laws: Indonesia has one of the largest labour forces in the world which make it stand on 5th rank. So, to protect the labour rights the government has

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