Essay on Business in Other Countries

Doing business in other states necessitates more than just knowledge and understanding of the dialect. On an international platform, the level of communication requires an understanding of simple business protocol and custom in the nation where you are making the trade. As an entrepreneur, one of the most important steps to achieving success is to build and maintain a local customer base. As soon as this goal is achieved, business owners feel they are ready to go to the next level by expanding internationally.

Having an international establishment is a remarkable achievement and not every corporate institution that sets out to do it completes what they started. To convert business efficiently from domestic to global, a new round of factors needs to be put into consideration that does not only affect the local establishment.

Business in Indonesia

Since Indonesia gained its independence, foreign corporations have made critical investments in the country to improve its resources, create infrastructure, create industrial facilities for trade as well as provide goods and services for the local market. The particulars of setting up a business and creating business venture in Indonesia are numerous.

Population

Indonesia is a state with huge numbers of people as well as significant opportunities. It is the worlds 4th most populated nation and the biggest economy in an eastern part of Asia with 252 million citizens (Department of International Trade).It is planned to be the 7th largest economy in the world by 2030.

Education

The system of education in Indonesia is diverse and enormous. In the Asian region, it is the 3rd largest education scheme and 4th largest globally. The countries system of education is under the management of two ministries-Ministry of National Education which constitutes about 84% of schools and the Ministry of Religious Affairs which represents 16% of learning institutions (The World Bank).The net enrollment rates in primary schools are lower than 60% in underprivileged regions compared to areas that are well-off that have general registration. Enrollment in secondary education has experienced a solid rise, however, is still low compared to other states in the area.

Education is fundamental to the Indonesian Administrations growth program. Spending in the education sector has improved considerably in the years ever since the economic disaster. Expenses in the education sector doubled up between the years 2000 and 2006.An equivalent of 14 billion U.S dollars was achieved (The World Bank).

Form of government

The system of government in Indonesia works within the structure of an official representative of a self-governing nation in which the President is the head of state as well as head of the government. The head of state, in turn, selects the Indonesian cabinet members which form the executive or policymaking division that upholds supremacy on a daily basis. The justice structure is made up of some law courts that deal with the nations internal cases (World Atlas). The highest justice system in the States is the Supreme Court, while the State Supervisory body Commission supervises cases against the country. The Constitutional Structure runs the Republic of Indonesia.

Infrastructure

Indonesia is experiencing massive economic development. This will place vast requirements on the infrastructure of the nation. Currently, Indonesia is ranked 10th globally in economic growth. With approximately 260 million occupants, a modern and well-organized infrastructure are dynamic for linking its people to the local as well as global markets.

In the 2016 budget, the government allocated the highest amount ever assigned for infrastructure growth-approximately 22.9 billion U.S dollars, which will remain a priority according to the 2015-20 development plan (The World Bank).

Language and Accounting system

Bahasa is the official language in Indonesia. However, nearly 20 languages are spoken in the country. As much as English is the most commonly used language in the business environment, it is not known extensively. Numerous older Indonesians speak Dutch due to their detailed history.

Accounting schemes are affected by commercial, civil, social and historical aspects. Indonesians were governed by the Dutch for many years. However, there is little information about accounting in the country. It is typical for developing nations to adopt external systems of accounting.

In Indonesia, significant accounting reforms are slow and ineffectively synchronized in many regions. Improvement to the economic program, embraced in 1848 from the Dutch has been stationary to the degree that it practically remains integral. On the other hand, the Jakarta stock exchange, established with the support from the United States support in 1977, implemented the American accounting customs (Foo). Inadequate control and organization led to sub-standard practices in accounting and the occurrence of duality in accounting and practice. For instance, the training of accounting technicians follows the guidelines of the Dutch system, although, at the higher level particularly at institutions of higher learning, the American-oriented method with a strong emphasis on financial auditing as well as reporting is taught. While it is necessary for a country that is developing to follow and uphold accounting practices in industrialized states, the blind shift to international systems will produce undesirable outcomes if the demands of compatibility and the beneficiary nation's requirements are not sufficiently taken into consideration. It is, therefore, imperative for developing countries to adjust and improvise accounting schemes to suit their specific needs. Relying entirely on foreign aid is insufficient to guarantee the achievement of any state accounting Improvement Programme.

Market System

Indonesia displays a great opportunity for e-commerce among other developing Asian markets with the current predictions putting this countrys e-market at approximately 130 billion dollars by the year 2020.The country comes third after China and India. With a projected yearly development rate of fifty percent and stable mobile-first enterprises, traders have an exceptional opening in Indonesia to concentrate on increasing correct mobile platforms to aid in facilitating the development of e-market, principally in the sector of the end user packed goods.

The present Indonesian e-commerce market is similar to that of Chinas online market. It consists of a big pool of business merchants offering merchandises acquired based mainly on social media references. In the same way, e-commerce in Indonesia imitates the old American e-market as well, which was swamped with clients suspicion to rely on online payment methods and dealers. Indonesia is a unique country in that it can create a fusion of extensive opportunities from the United States and Chinas e-commerce markets, driving the Indonesian virtual market onto the international platform.

Working with other countries

The economy of Indonesia depends greatly on local consumption. This scope has seen growing investment by native and alien stakeholders. In general, nevertheless, the economy is quite diverse. Both the government administration and the private sector play a huge part. The government of Indonesia has employed a long-lasting improvement strategy for the future to alleviate economic development. Its primary objectives are to decrease poverty levels, maintain the value of human resources, advance science and technology, as well as reinforce fiscal effectiveness (International).

ASEAN-Association of Southeast Asian Nations.

As a member of ASEAN, Indonesia is part of the Asian Economic Community. The AEC permits free movement of merchandises with zero percent tax. The union will aid British organizations working in the region. The Asian Economic Community encourages reforms and nurtures economic growth in the area (Department of International Trade). Better financial facilitation, supervisory reform, and economic growth will be of benefit to all local and foreign companies. British organizations manufacturing and transporting merchandises within the state can as well profit from the intra-ASEAN reduction of prices. There will be some regions where the Asian Economic Community gives other ASEAN countries improved access to markets than United Kingdom companies have. However, these are expected to be impartially restricted.

Entrepreneurs should put into consideration some things to start up a business in Indonesia particularly when dealing with administrative bodies as well as enterprises that are owned by the state. The system of government here is relatively a challenge, and one has to create a link with the correct individual to take care of this concern.

The market in Indonesia is more customary and social. Customers have a tendency to create a connection through communication with the retailers. That is why it is essential to make use of all sorts of communication with the consumers, as well as chat platforms for example BBM. Finally, one has to go mobile. There has been a rapid increase of mobile internet users because of the economic data plan services provided in Indonesia.

Works Cited

Department of International Trade. Doing business in Indonesia: Indonesia trade and export guide. 15 April 2016. https://www.gov.uk/government/publications/exporting-to-indonesia/exporting-to-indonesia.

Foo, See Liang. A comparative study of accounting systems in Indonesia and Singapore. n.d. https://hydra.hull.ac.uk/resources/hull:3796.

Internations. Working in Indonesia. n.d. https://www.internations.org/indonesia-expats/guide/working-in-indonesia-15413.

The World Bank. Indonesia: Basing infrastructure investment on more solid ground. 31 January 2017. http://www.worldbank.org/en/news/feature/2017/01/31/indonesia-basing-infrastructure-investment-on-more-solid-ground.

. World Bank and Education in Indonesia. 1 September 2014. http://www.worldbank.org/en/country/indonesia/brief/world-bank-and-education-in-indonesia.

World Atlas. What Type Of Government Does Indonesia Have? 21 March 2017. http://www.worldatlas.com/articles/what-type-of-government-does-indonesia-have.html.