Information regarding Pestel has been part of market analysis for any industrial sectors especially in countries such as Indonesia of where some industrial data is quite often unavailable. Analyst is compelled to do guesstimation by using limited information. This condition has quite often placed Pestel data and analysis as one of important information for business analist to do market estimation especially in term of future projection. Canvassco as one of the regional B2B research agency presents a pestel analysis in an interactive design as market analysis does not have to be boring.

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INDONESIA PESTEL ANALYSIS
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CAPITAL CITY: Jakarta
LAT/LONG: 6N-11S & 95-141E
LANGUAGE: Bahasa Indonesia
CURRENCY: IDR

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POLITIC
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INDEPENDENCE DATE | Aug 17, 1945
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PANCASILA
1945 Constitution
(known as UUD45)
Presidential
Country
Symbol Na/onal
Principle Legal
basis Government
System

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Political Parties
In 2014, 12 political
parties contested the
national legislative
election. Formed 2
coalitions & Jokowi is
from the minority one.

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Political Situation
Executives need to initiate
win-win relationship with
legislatives especially
those from opposition
parties to accelerate the
development program
execution

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Political Situation
Splits that occurred in some political parties
might cause uncertainty in term of loyalty to the
coalition. Jokowi could have benefited from this
situation.

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ECONOMY
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Macro Economic Indicator
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GDP (US$ bio)
868.3
GDP per capita
(US$)
GDP growth Inflation rate
3,475 5.8% 8.38%
N/A N/A 5.1% 8.36%
Consumer Price
Index
109.8*
119.0*
2013
2014
Note:
*) Highest level
Source: World Bank, Statistics Indonesia

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Macro Economic Indicator
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Benchmark
interest rate
7.50%
Lending interest
rate
Export/import
(bio US$)
FDI/DDI
(mio US$)
11.70% 182.6/191.7 28.6/12.3
7.75% 11.90%
161.7/
163.7**
21.7/
9.6***
Xchange rate to
US$1
IDR10,451
IDR11,878
2013
2014
Note:
*) projected figures
**) Jan-Nov 2014
***) Jan-Sep 2014
Source: Bank Indonesia, Statistics Indonesia

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Macro Economic Indicator
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Poverty
11.5%
GINI index Consumer conf
index
Business conf
index
0.41 116.5 104.7
11.0% N/A 116.5 N/A
2013
2014
Source: World Bank, Statistics Indonesia

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Economy
An average of 5.9% pa
economic growth rate
during 2010-2014 inflation
rate reached 6.4% pa for
the same period
Source: World Bank, Statistics Indonesia, Canvassco analysis

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2014 IS THE
MOST
STRUGGLING
YEAR
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THE GLORY OF 2011

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IDR Exchange
Rate
Rupiah has been
continuing to weaken
mostly due to external
factors that affect demand
of US$ in the country

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Poverty
People live below poverty
line was still more than
10% of the population
with GINI index reach 0.41
in 2013

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Monetary & Fiscal
Policy
Central bank(BI) enforce
tight monetary policy
Government targets tax
radio to GDP around
14-14.5% in 2014

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SOCIO CULTURAL ANALYSIS
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Socio Indicator
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Population
(mm people)
250
population
growth pa
Density (people/
km2)
Gender ratio
(M:F)
1.49 138 101:100
253 1.2 140 101:100
Gender
inequality index
0.500
N/A
2013
2014
Source: Statistics Indonesia, United Nations Development Programme

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Socio Indicator
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Number of
household
63.5
Av. household
size
Working
population
Unemployment
3.9 120.2 6.3%
64.7 3.9 121.7 5.9%
Human Dev
index
0.684
N/A
2013
2014
Source: Statistics Indonesia, United Nations Development Programme

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Indicator
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Main religion No of formal
religion
Major tribes No of tribes
Muslim Six Java >1300
Country size
5.2
mn km2
Source: Statistics Indonesia

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Population
Indonesia is the top 4
populous country
Male population is only
slightly higher than
female’s

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Human
Development
Gender inequality index is
0.500 of which in medium
human development
Source: United Nations Development Programme

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Socio Economic
Sustainable FDI and DDI
growth. Domestic market
is very important as
Indonesia is the top four
populous country and
most of them are on the
consumer class

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Socio Culture
Although more than 85%
of Indonesian is Muslim,
the culture is still strongly
influence by Hindu
Buddhist especially those
originally from Java and
Bali

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TECHNOLOGY
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Technology
survey
The fourth largest users
of Facebook
Fifth largest users of
Twitter. Jakarta ranking
number one (over Tokyo)
in 2012 for the total
number of posted tweets.

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Manufacture
Industry
Technology used is
considered as “out dated”
even though
manufacturing is the
largest contributor of GDP

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Agricultural
High technology is only
implemented in certain
areas such as seed
cultivation, pest control,
animal health and few
others.

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Trade, Hotel &
Restaurant
High tech is mostly in
term of e-payment
(cashless). Other area is
e-ordering (e-booking)

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ENVIRONMENT
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Green
environment
Despite government
programs in promoting
green environment,
deforestation and
environmental pollution
are still happening.

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Deforstation
Beat Brazil in 2012 of
840,000ha due to forest
conversion to plantation,
industrial and housing
areas. Besides forest fires
and possibility of illegal
lodging.

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Green house gas
emission
Indonesia is the 3rd major
producer of green house
gas emission after China
and USA of which 85%
were from deforestation.

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Enacted regulations for various
industries related to quality of waste
and emission, hazardous material and
waste management, environment
conservation, and many others.
Major pollution is still
happening from
transportation, manufacture
and energy sectors

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LEGAL
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Investing in
Indonesia
2014 negative investment
list has been enacted
aiming to boost both FDI
and DDI.

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INVESTING IN INDONESIA
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Energy (oil & gas and power),
transportation, pharmaceutical and
trading are affected verticals.
For few industrial sectors, it takes
more than a year to formally obtain
the operating license.

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Uncertainly
Regulatory revisions
might cause business
uncertainty especially for
foreign investments

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Regulatory Barrier
Due to loyalty to political
parties and coalitions,
approval process for
regulatory decisions
among legislative power
could take a long time.

39. © Canvassco 2015. All Rights Reserved.
CONTACT US
CANVASSCO IN INDONESIA
Ira Sustrini
Account Director
email: indonesia@canvassco.com
Tel: +6221 2985 8088