Case Study Iia Australia and New Zealand: Doing Business with Indonesia

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CASE STUDY IIa Australia and New Zealand: Doing Business with Indonesia There are thousands of Australians, both individually and as members of organizations, who share trade and education with Indonesia as do New Zealanders. Yet, though geographically part of Asia, citizens of Australia and New Zealand are members of cultures very different from any other in Asia. As increasingly they seek to trade in Asia, so also do they need to learn to manage such differences; and doing business in Indonesia is a good example. Travelling time by air from Perth, Western Australia, to Indonesia is slightly less than four hours, yet the cultural distance is immeasurable. In January 2007, the Jakarta Post reported GDP growth had risen to over 5%. Consumer consumption drives the economy but exports are thriving, and therein lay opportunities for Australia and New Zealand. Indonesia is a country of more than 17,000 islands and the world’s largest Muslim nation. In her lecture, Dr. Joan Hardjonoof of Monash University discussed the historical and geographic contexts of modern Indonesia. She spoke of the many clusters of islands worldwide that have come together as nation states—for example, the Philippines and some island groups in the Pacific—but described the Indonesian archipelago as in a class of its own. It is unique in terms of extent and diversity. For example, Java and Bali have fertile volcanic soils, while elsewhere the land is rich in mineral resources such as oil, natural gas, and coal. Climatic conditions vary from island to island. Some regions experience annual heavy rains and floods, while others suffer regularly from droughts that often lead to famines. With a population of more than 230 million people, Indonesia is the fourth most populous country in the world, but there is a great imbalance in population distribution within the archipelago. Settlement has always been…...

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