Assessment of a New Emerging Market-Free-Sample for Students

The trade of timber is one of the most important trades in Indonesia. Indonesia’s forest products such timber and other related products comprises 10% of the country’s GDP. Indonesia used to contribute 70% of the plywood industry in the world during the year 1980. But from then there can be seen a declining trend in the exports. The figure came down from $3.6 Billion to $2 billion in the year 2000. The decline is due to some of the aggressive policies that are being taken by the government against exports of timber. Timber or forest product industry is one of the major revenue generators for Indonesia The business market of Indonesia is one amongst the biggest business market in the world. It is projected in accordance to the economic growth that by 2030 it will become 7 th largest economy in the world. The country of Indonesia has a GDP of 932 billion as recorded in the year 2016. It ranks in 8 th position based on the purchase power parity. The economy of Indonesia is growing at a rate of 5% every year since from the last decade. The country has sound macroeconomic policies and a huge population of youth that has a growing domestic demand have promising future ahead. The government has announced a number of reforms or policies in order to push the economic condition of the country. The reforms are expected to improve the business condition of the country. The GDP per capita of the country is $3604 which is more than many of the Asian countries. The country has the world’s fourth largest middle income group people with 17.3 households as in the year 2014. (Larson et al, 2016). The country has developed a plan for the next 20 years. In the next twenty years the country wants to make development and changes. There plan starts from the year 2005 and will last till the year 2025. The main focus of the country is its economy and other reforms. The country is looking forward to strengthen its infrastructure and they also came up with other development programmed to develop its educational and healthcare sector of the country. The reform which are being taken by the country are extremely beneficial for the people who are in the below poverty level (Lustig, N 2016). The country is currently facing the problem of the slower pace of creation of jobs for the people 1.7 million person join jobs each and it is problem for the country to create jobs. The total population of the country is around 253 million out of that 28 million people live under the line of poverty. The government is trying their level best to reduce the poverty level but from the last few days this speed has reduced. The poverty level which was getting reduced by 1% each and every ever is now reduced to 0.3% (Aguiar, Narayanan and McDougall, 2016). The government of the country has come up with reforms regarding the reduction of poverty level and betterment of the public services. The public services include transportation, health, education etc. a huge stress has been given by the government in regard to the health care sector of the country. The health care sector has made many advances so there is an improved and modern health care unit so as to provide health care services. The gap between the poor and the rich is relevant in Indonesia and the government is trying to reduce this gap. The health care in the country suffered a lot. It is said that 103 children in 1, 00,000 die in Indonesia which is a very high alarming number and reforms are being taken to reduce this high maternal death. Out of 3 every 1 child suffers health condition such as problems of growth and brain development. The problem in the youth results in problem of the growth of the country. As it is know that youth is the future of our country and it is through youth that we bring changes and new reforms in the country (Otoo et al 2014). If the youth of the country is not strong enough then it is bad sign for the country. The government of Indonesia is trying to cope up these challenges and they had been pretty successful regarding controlling these problems.   In order to strengthen the economy of the country the government has brought new reforms they have opened up sectors for differ ent kinds of investment and thus this will reduce high logistics that they may had been facing in the past. The economy of Indonesia is rising it is making great progress so the investors around the world seeing this great opportunity. The country has become a great place for foreign direct investment from around the world. After India and china Indonesia is the third major country if consider its economy. As we know that the country is the world’s tenth most populated country and the world’s third largest democratic country. If we look at the export of Indonesia, in that case we will see that the country is one of the largest exporter of thermal coal and also the exporter of palm oil. These are products of high value and they fetch high revenue from the foreign countries. The most important thing about the economy of the country is that it relies on itself. The economy does not rely on other countries. In one word it can be said that the country is self sufficient, it is a great advantage for the country. When a country is self sufficient, in that case the country does not require the help of other countries in case of importing products that means the country produces most of the products (Otoo et al, 2015). Right at the moment Indonesia is standing at a situation where it is a key point of the country where it is making a transition for the betterment for the country. The growing from small economy to a larger economy, the country was a primary producer of the products such as coal and palm oil and now has become one of the largest producers of in the world. The country has opened a window for the investors.    The country’s economy is one of the fastest in the world and its growing at a rapid speed. This economy brings in great opportunity to investment. There is a huge opportunity for foreign direct investment within the country (Ozawa, T 2014).The analyst have made an assumption that Indonesia will grow as a very large and stable economy in the future though the country is facing some issues such as corruption and bureaucratic issues that is restraining the country from 360 degree modernization but still the country has every possible opportunity to grow. One of the main issues is the poor infrastructure and not qualified human resources which are not contributing towards its growth. The country has all the resources needed to rule the economy of the world in the future but it is to be guided in a way such that it can be made possible (Ikein, A.A 2017). The government of Indonesia is proactive and they have come up with numerous numbers of reforms which will help in foreign direct investment. Although the corruption remains a big issue which needs to be handled for better growth Due to the large population of Indonesia the market is very vast and dynamic and the FDI will help the country to fulfill its need and thereby providing growth for the country by improving its economy. Thanks to a large population and FDI inflow, Brazil’s potential for growth is extremely high. There is a substantial trend of a growing middle-class and the gap between the rich and poor is declining steadily. Additionally, the Central Bank has successfully reduced the risk of currency devaluation and has also brought inflation under control. However, when it comes to the dollar, the currency is considered to be overvalued, which is adversely affecting the exports of the country There are a number of people who live under the line of poverty and with the help of FDI the economic condition of the country will improve. The country has huge number of youth who have demands and wants that can be fulfilled by the FDI by giving them the opportunity for employment and a better standard of living. The country is good at technology. The maximum part of the population of Indonesia is under the age of 30 and they are technologically savvy. So with the flowing of foreign direct investment, the country can utilize its human resource to generate revenue which will help in improving the condition of the country The country of Indonesia is rich in natural resources. The natural resources that are being produced are petroleum, tin, natural gas, nickel, timber, bauxite, copper, fertile soils, coal, gold, silver. The natural resources of the country will attract foreign investment more in comparison to the countries with fewer natural resources. This helps to give a competitive edge over other countries which may have few amounts of natural resources. It also opens the door for multinational companies to exploit the situation and do business in the country which will help the country in economic growth. The natural resources create more option and helps in growth of the economy. In Indonesia the one fourth of the manufacturing production was accounted by FDI during the period of 1990s. The Foreign direct investment created employment and developed the support of the suppliers and transferred technology. It also helped in generating more tax revenue for the government of Indonesia but it had a problem regarding the balance of payment. It impacted negatively on balance payment and it also caused continuous deficit in relation to manufacturing goods. Though FDI can help and bring positive changes in number of sectors and so it is not to be restricted. It can create technological advancement, help in growth of the economy, Improve the infrastructure of the country and thereby helping in overall growth of the company. These policies or reform that is being taken by the country are causing hindrance in its growth. The ban on raw material exports is one of the biggest problems the country is currently facing. The restriction of retail sales of liquor and they have also proposed a ban on sales of liquor in the parliament which is contributing in the decline of the economy. The country is high in natural resources. It is blessed with natural minerals. It is one of the largest thermal coal exporters in the world. The country is blessed mineral resources. They are the largest exporter of tin in the world (Dunning, J.H 2014). The coal that is found in Indonesia is low in sculpture which is good in nature and it can be found very close to the surface which makes it very easy to extract. Thereby the cost of extraction of the coal is very little in comparison to other countries where the coal can be found deep below the soil, where the extraction cost gets very high. Apart from coal Indonesia has great deposits of gold and silver which thereby makes it very rich in minerals (Visor et al, 2015). As there are active volcanoes in the country, the soil of Indonesia is very fertile and has many deposits which is high in natural minerals there by making the country high in natural resources. Apart from this Indonesia is situated in such an area that it helps them t o generate renewable energy. As the soil is extremely fertile in nature it helps to cultivate commodities of high value such as palm oil, coffee and rubber. These products are exported to different parts of the world and they fetch great revenue for the country. The country is trying to be as self-sufficient as possible thereby reducing their import and increasing their export so that they increase their revenue earning and gives away less revenue (Cairns and Slew, 2017). The country has large number of population and youth that can drive the country to a new economic height. The country has around a population of around 250 million and its growing every day. In the year 2009 the country has seen a growth of 4.9 % in gross domestic production, which is a substantial growth. As the country is self sufficient and most of the need of the country is fulfilled by the products of its own, in that case the country is fewer dependants on other. This will help the country in time of economic crisis. In case of any kind of economic cries faced by the world, in that case it won’t affect much on Indonesia (He et al, 2015). As the country achieves new growth each and every day the manufacturer in the country plays a greater role in satisfying the needs of the people. With the increase in gross domestic production and economy of the country the income level of the people of the country will also increase and this is a very positive point for the people who are in the middle income group or people who reside below the poverty level or lower income group (Hill and Kohpaiboon, 2017).The country will need to start production of the products which it is not producing currently at this moment such as smart phones or other technological products. The youth of the country is becoming technologically savvy and the manufacturing industry is also trying to understand the trend within the population of the country and acting accordingly (Nasution,   2014.). It is great news that more than 50% of the total population of the country is youth which is under the age of 30, which is great news for the country. Having a large base of youth for the country is very advantageous, this youth is technologically very upgraded which is a very important for the country. So the future of the country is promising unlike china where the percentage of the youth is very little as most of the population is aged due to their one child policy. The aim of Indonesia is change the economic condition of the country by the year 2030 and they have taken measures accordingly. They are making changes in their technological sectors, there workforce and also in their production. This will help in the transition of the economy of the country. If they will have a better workforce which is skilled and a manufacturing sector which is advanced and can fulfill the needs of the country, in that case they can achieve the economic growth they are looking for (He, 2015). The country has faced many political changes and transformation in the past years. The country is now the rule of Susilo Bambang Yudhoyono, who is the first Indonesian president who is elected by voting. The country has evolved in relation to the politics. They have a new and mature political structure, with the democratic rule the country has become more matured where each and every member of the country has a personal opinion, which that person can keep forward through his or her voting right. The political condition of the country has become much stable in nature. This political stability will help the country towards its economic growth (Bhat, 2017). Foreign direct investment will help the country in utilizing huge human resources which comprises a big number of youth. It will also bring in new technology which will create an advancement and growth in terms of technology. The economic condition of the country will get better. It will create jobs which help the individuals of the country in increasing their standard of living. 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