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