INDONESIACOUNTRY REPORT

Global Business Management

Geography & History

Team #1

1. Charkkri - 0653024

2. Siripa - 0653033

3. Clara - 0653026

4. Linnea - 0645004

5. Jenny - 0653012

6. Lisa - 0645050

7. Kelly - 0653025

8. Ebba - 0645006

OUTLINE :•GEOGRAPHY

• GEOGRAPHY AND HISTORICAL LAND DISPUTES

• NATURAL RESOURCES

• PALM OIL OVERVIEW

• ENVIRONMENTAL ISSUES

•HISTORY

• BEFORE INDEPENDENCE [BEFORE 1945]

• EARLY KINGDOMS [ 0 TO 7TH CENTURY]

• SRIVIJAYA [ 7TH CENTURY]

• MAJAPAHIT [13TH CENTURY]

• INVASION OF THE DUTCH [16TH CENTURY]

• JAPANESE ADMINISTRATION [19TH CENTURY]

• AFTER INDEPENDENCE [1945 ONWARDS]

• OLD ERA [1945 - 1967]

• NEW ERA [1967 - 1998]

• REFORMATION [1998 ONWARDS]

THE WORLD’S LARGEST ARCHIPELAGO• 1.9 MILLION KM2 (53 X THE SIZE OF TAIWAN)

• POPULATION: 260 MILLION

• MORE THAN 17 000 ISLANDSSUMATRA, SULAWESI, BALI, JAVA

KALIMANTAN: KONFRONTASI 1962-1966

PAPUA: WEST NEW GUINEA DISPUTE 1950-1962

• CAPITAL: JAKARTA

• TROPICAL CLIMATE: HEAVY RAINFALL, HIGH HUMIDITY/ TEMPERATURE, LOW WIND

• TOPOGRAPHY: MOUNTAINS, 100+ ACTIVE VOLCANOS AND LOW PLAINS ALONG THE COAST LINES

NATURAL RESOURCES

Indonesian Production or Reserves (R) Global Production or Reserves (R) Share of TotalCoal 241.1 mln tons oil equiv. 3,830.1 mln tons oil equiv. 6.3%Coalbed Methane 453 trillion cubic feet (R) 7,550 trillion cubic feet (R) 6.0%Cocoa 0.48 million tonnes 3.96 million tonnes 12.2%Coffee 9.4 million 60 kg bags 141.7 million 60 kg bags 6.6%Crude Oil 825,000 bpd 91,670,000 bpd 0.9%Geothermal Energy 27,510 MW (R) 68,775 MW (R) 40.0%Gold 109.9 tons 3,109.0 tons 3.5%Natural Gas 75.0 billion m³ 3538.6 billion m³ 2.1%Palm Oil 31.0 million tons 60.0 million tons 51.7%Rice 70.6 million tons 744.0 million tons 9.5%Rubber 3.2 million tons* 12 million tons* 26.7%Tea 0.13 million tons 5.03 million tons 2.6%

COMMODITIES OF INDONESIA

PALM OIL IN INDONESIA

What is palm oil?

PALM OIL PRODUCTION OVERVIEW• INDONESIA IS THE WORLD'S LARGEST PRODUCER AND EXPORTER OF PALM OIL 

• BETWEEN 1985 AND 2017:• Palm oil plantation has expanded from 600,000 HA to 11.5 million HA

• PALM OIL PLANTATIONS:• 70% is located on SUMATRA • 30% is located on KALIMANTAN

• NEGATIVES: deforestation, destruction of the rainforest, biodiversity loss, land disputes, human rights violations

BEFORE INDEPENDENCE [BEFORE 1945]Early Kingdom [ Year 0 to 7th Century]• Influenced by the Indian culture, where Hinduism came and is spread.• One of the early kingdom was Tarumanegara [358 to 669 CE]

AT THAT TIME

BLACK DEATH DISEASE IN EUROPE

TANG DYNASTY IN CHINA

7th Century to 13th Century

Sailendra Empire • Based in Java Island• Constructed Candi Borobudur • Constructed Candi Prambanan

Srivijaya Empire • Based in Palembang (Sumatera Island)• Largest Maritime Kingdom in Southeast Asia• Monopoly on trade with China• Major centre of Buddhism• Decline in the 12th Century due to dispute on political

and military

World’s Largest Buddhist Temple

and Greatest Monuments

CANDI BOROBUDUR

CANDI PRAMBANAN

Largest Hindu Temple site in Indonesia and one of the biggest in Southeast Asia

Constructed in 8th Century

Majapahit Empire [1293 – 1527]• Greatest and most powerful empires in Indonesia• Wider trading region stretching from Sumatra to Maluku• Growth in trade with Chinese and European for demand of Indonesian Spices

AT THAT TIME

MING DYNASTY IN CHINA

Motivation for Colonialism : • Domination of the sources of spices• Emerging Rivalries between European Powers

1512Arrival of the Portuguese

1602Creation of the Dutch East India Company

European ColonialismAT THAT TIME

EUROPEAN COLONIAL EXPANSION

RENAISSANCE in EuropeNAPOLEAN WARS in Europe

Causes of the Bankuptcy of the Dutch East India Company : • Loss of control in trade with China• Crippled by the Anglo-Dutch war in Europe• Confusion between Trade and Politic activities

1799Bankruptcy of the Dutch East India Company

1830Creation of the Cultivation System

1850Famines

The Dutch State Rule: CultuurstelselAT THAT TIME

OPIUM WARS in AsiaLINCOLN PRESIDENT in the USNAPOLEON IN EXILE in Europe

1901Creation of the Ethical Policy

1908First Nationalist Movement

The Dutch State Rule: Ethical PolicyAT THAT TIME

COMMONWEALTH in AustraliaRUSSO-JAPANESE WAR

BOLSHEVIK PARTY in Russia

held in 1800added 1801-1870added 1871-1942

1942Defeat of the Dutch Against the Japanese

1945Indonesia’s Independence Day

1943Japan faces difficulties in End of World War

Japanese AdministrationAT THAT TIME

End of World War II

AFTER INDEPENDENCE [1945 ONWARDS]Old Era [1945 - 1967]• Independence of Indonesia was proclaimed on 17 August 1945• Three main political parties were proclaimed : The Communist Party (PKI), The Army and President Sukarno

Sukarno, first president Mohammad Hatta, first vice president

1945Independence day

1955First democratic elections

1949The Unitary Republic of Indonesia

Old Era [1945 - 1967]

1959Guided Democracy

1967New Era began

1965Pengkhianatan G30S/PKI

Guided Democracy • the political system based on the traditional village systemG30S/PKI • the version of the communist coup on 30 September 1965

The Year of Living Dangerously

New Order Era [1967 - 1998]Suharto’s presidency

• Rapid socio-economic growth• the drop of property rate ( from 45% to 11% )• GDP growth of 5.03% pa• massive investment of infrastructure• health care program that increase life expectancy from 47 – 67 years and cutting

the infant mortality rate by more than 60%• increase in school enrollment ration reaching 90%, (almost eliminating gap

between boys and girls)• Anti communist ( all communist group and political party were banned )

New Order Era [1967 - 1998]

corru

ption

New Order Era [1967 - 1998]

DISCRIMINATING OF CHINESE INDONESIAN

X No freedom of expressionX No human rightX No Chinese new year celebrationX No Chinese language

New Order Era [1967 - 1998]

THE 1998 TRAGEDY

Reformation Era [1998 - Present]

Bacharuddin Jusuf Habibie

Abdurrahman Wahid (Gusdur)

Megawati Sukarnoputri

Susilo Bambang Yudhoyono

Joko Widodo

1998 – 1999 1999 – 2001 2001 – 2004 2004 – 2014 2014 - Present

Reformation Era [1998 - Present]

Social• Abolition of Chinese-Indonesia discrimination by Gusdur• Inauguration of Chinese New Year as the national holiday of Indonesia by MegawatiNatural Disaster• Tsunami, earthquake, mud flow and volcano eruption during 2004 – 2010• Forest Fire in 2015, caused air pollution crisis called Southeast Asian haze

Reformation Era [1998 - Present]

Corruption• Corruption seems to appear in every presidency.• Although SBY focused on fighting corruption, he was involved in many high-profile corruption cases.

Economy • Economic growth was stable since early 2000s.

Current Presidency [2014 – Present]Joko Widodo, notable president

• Remove some investment regulations to make it easier to invest.• Develop infrastructure with the biggest budget in Indonesia history.

(US$22 billion – approx. NTD660 billion)

• 2014: Listed by Fortune Magazine as one of 'The World's 50 Greatest Leaders‘• 2016: Listed by Bloomberg and awarded as the most successful leader in region of Asia and

Australia

Q & A