If you were a foreign firm, would you consider doing business in Indonesia? Include your reasons...

If you were a foreign firm, would you consider doing business in Indonesia? Include your reasons in your response. Question from Chapter 10 Closing Case, International Business: The New Realities (Australian Edition)

Expert Solution

As a foreign firm, I would not prefer or consider doing business in Indonesia mainly for the below-mentioned reasons:

For the ease of doing business, the country is ranked 109 in the world
The permission to start a business in the country takes a long time and it involves a lengthy procedure
The company will have to build a good network in the company before planning to enter the market.
The company will have to create a network in the government circle as well in order to get the permission quickly
The relationships built in the country is not a one-time thing and the companies will have to keep nurturing it to get the benefit for a long time.
The country is facing a lot of social issues and they can have a direct impact on the business
The increase in corruption and the decrease in the quality of the infrastructure adds to problems
The country is also prone to the natural disasters and they can be very extreme in terms of the damage caused.
The country has been facing violent religious violence for many years.

keosha answered 1 year ago

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