Introduction:
The Republic of Indonesia is the largest archipelago in the world comprising 17,504 large and small tropical islands fringed with white sandy beaches, many still uninhabited and a number even still unnamed. Straddling the equator, situated between the continents of Asia and Australia and between the Pacific and the Indian Oceans, it is as wide as the United States from San Francisco to New York, equalling the distance between London and Moscow. Indonesia has a total population of more than 243 million (at the end of 2011) people from more than 200 ethnic groups. Bahasa is the official language in Indonesia which is a 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.
Among the most well known islands are Sumatra, Java, Bali, Kalimantan (formerly Borneo), Sulawesi (formerly Celebes), the Maluku Islands (or better known as Moluccas, the original Spice Islands) and Papua. PESTEL Analysis
Political Analysis:
Political Background: In 1602 the Dutch established the Dutch East India Company (VOC) and became the dominant European power. Following bankruptcy, the VOC was formally dissolved in 1800, and the government of the Netherlands established the Dutch East Indies as a nationalized colony. Japanese occupation during World War II ended Dutch rule, and encouraged the previously suppressed Indonesian independence movement. A later UN report stated that four million people died in Indonesia as a result of famine and forced labour during the Japanese occupation. Two days after the surrender of Japan in August 1945, Sukarno, an influential nationalist leader, declared independence and was appointed president. The Netherlands tried to re-establish their rule, and the resulting