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Building Materials in Indonesia

Title:

Building Materials in Indonesia: A Strategic Entry Report, 1997

Date Published: 1999-04-07
Pages: 170
ISBN: 0741809664
   
About the Author(s)/Editor(s)
Philip M. Parker
Eli Lilly Chair Professor in Innovation, Business and Society
INSEAD (Fontainebleau, France & Singapore)

Philip M. Parker is the Eli Lilly Chair Professor of Innovation, Business and Society at INSEAD (Fontainebleau, France and Singapore). He has been a professor there since 1988 where he teaches graduate and doctoral-level courses on global competitive strategy and research methodology. He has taught courses at Harvard University (HBS), the Hong Kong University of Science and Technology, Stanford University (GSB), the Massachusetts Institute of Technology (MIT Sloan School) and UCLA (Anderson School). Dr. Parker received his Ph.D. in Business Economics from the Wharton School at the University of Pennsylvania and has Masters degrees in Finance and Banking (University of Aix-Marseille, France) and Managerial Economics (Wharton). His undergraduate degrees are in mathematics and economics. Some of his work and methodologies applied in this study were financially supported by the Research and Development Committee at INSEAD which is gratefully acknowledged.

About the Series
This series helps international managers expand to various country markets around the world. Each report is a broad study of a particular product market, but also gives information useful for entry strategies (trend analysis, marketing, production, finance, and distribution strategy). Each study provides ample statistics on market size and trends, as well as various economic statistics cover human resources and cross-cultural management.
Contents
1 INTRODUCTION & METHODOLOGY
        1.1 What does this report cover?
        1.2 How to Strategically Evaluate Indonesia
        1.3 Latent Demand and Accessibility in Indonesia
2 BUILDING MATERIALS
        2.1 Latent Demand and Accessibility: Background
        2.2 Latent Demand: Aspects of Interest
        2.2.1 Market Highlights
        2.2.2 Statistical Data
        2.2.3 Best Sales Prospects
        2.3 Accessibility: The Structure of Competition
        2.3.1 Domestic Production
        2.3.2 Pipe and Fitting Products
        2.3.3 Sheet Glass
        2.3.4 Metal Mountings and Fittings
        2.3.5 Security Equipment
        2.3.6 Electric Lamps and Lighting Fittings
        2.3.7 Prefabricated Housing
        2.3.8 Foreign Competition
        2.3.9 Steel Pipes
        2.3.10 Float Glass
        2.3.11 Metal Mountings and Fittings
        2.3.12 Burglar and Fire Alarms
        2.3.13 Electric Lamps and Lighting Fittings
        2.3.14 Prefabricated Buildings
        2.3.15 U.S. Market Position
        2.3.16 End-Users Analysis
        2.4 Accessibility: Key Factors
        2.4.1 Import Climate
        2.4.2 Distribution/Business Practices
        2.4.3 Financing Method
        2.4.4 Accessibility: Trade Events
        2.5 Useful Contacts
        2.5.1 Key Government Agencies and Organizations
        2.5.2 State Owned Companies (Construction and Building Material Manufacturers)
        2.5.3 Useful Contacts: Trade Organizations
        2.5.4 Private Companies
        2.5.5 PVC Pipes
        2.5.6 Steel Pipes
        2.5.7 Sheet Glass
        2.5.8 Metal Mounting & Fittings
        2.5.9 Burglar & Fire Alarm
        2.5.10 Electric Lamps and Lighting Fittings
        2.5.11 Prefabricated Housing
3 THE ECONOMICS OF LATENT DEMAND IN INDONESIA
        3.1 Executive Summary
        3.2 Economic Issues in Indonesia
        3.2.1 Economic Fundamentals and Dynamics
        3.2.2 Challenges for the Habibie Government
        3.2.3 U.S. & Foreign Business Interests
        3.2.4 Response to the Crisis - The IMF program
        3.2.5 Fiscal Policy
        3.2.6 Monetary and Exchange Rate Policy
        3.2.7 Structural Reform and Deregulation
        3.2.8 Monopolies and Cartels
        3.2.9 Privatization
        3.2.10 Wood, Wood Products, and the Forestry Sector
        3.2.11 Palm Oil
        3.2.12 Food Marketing/BULOG
        3.2.13 Corporate Debt and Bankruptcy
        3.2.14 Ministry of Finance
        3.2.15 Trade Credit
        3.2.16 Exchange Of Interbank Debt
        3.2.17 Corporate Debt
        3.2.18 Banking Sector Reform
        3.2.19 Trade Issues
        3.2.20 Food Security and Distribution
        3.2.21 Central Bureau of Statistics
        3.2.22 Negative Outlook for Major Sectors
4 EXPORT ACCESSIBILITY IN INDONESIA
        4.1 Executive Summary
        4.2 Exporting to Indonesia
        4.2.1 Financing Strategies
        4.2.2 Financing Export Strategies
        4.2.3 Export Financing Options
        4.2.4 Asian Development Bank
        4.2.5 The World Bank
        4.2.6 Islamic Development Bank
        4.2.7 Financing of Agricultural Exports
        4.2.8 Trade Regulations and Standards
        4.2.9 Trade Barrier Risks
        4.2.10 Valuations on Imports
        4.2.11 Licenses Required for Imports
        4.2.12 Controls on Exports
        4.2.13 Import Documentation Requirements
        4.2.14 Free Trade Zones & Warehouses
        4.2.15 Labeling Issues
        4.2.16 Restrictions on Imports
        4.2.17 Adherence to Free Trade Agreements
5 DIRECT INVESTMENT ACCESSIBILITY IN INDONESIA
        5.1 Executive Summary: Natural Resources
        5.2 Executive Summary: Industry
        5.3 Direct Investment in Indonesia
        5.3.1 Attitudes Toward Foreign Direct Investment
        5.3.2 Oil and Gas
        5.3.3 Mining
        5.3.4 Banking, Securities and Insurance
        5.3.5 Currency Conversion and Transfer Risks
        5.3.6 Expropriation Risks
        5.3.7 Dispute Settlement Risks
        5.3.8 Direct Investment Incentives and Requirements
        5.3.9 Private Ownership Risks
        5.3.10 Protecting Property
        5.3.11 Patents
        5.3.12 Trademarks
        5.3.13 Copyrights
        5.3.14 New Technologies
        5.3.15 Regulatory Corruption Risks
        5.3.16 Capital Market Risks
        5.3.17 Political Violence Risks
        5.3.18 Corruption Risks
        5.3.19 Key Bilateral Investment Agreements
        5.3.20 The Local Labor Market
        5.3.21 Trade Zones & Free Ports
        5.3.22 Foreign Direct Investment Statistics
6 MARKETING & DISTRIBUTION IN INDONESIA
        6.1 Executive Summary
        6.2 Marketing and Distribution in Indonesia
        6.2.1 Distribution Channel Options
        6.2.2 Representatives and Agents
        6.2.3 Franchising Activities
        6.2.4 Direct Marketing Options
        6.2.5 Joint Venture and Licensing Options
        6.2.6 Steps to Opening a Representative Office
        6.2.7 Selling Strategies
        6.2.8 Advertising Options
        6.2.9 Pricing Issues
        6.2.10 After Sales Service and Customer Support
        6.2.11 Public Sector Marketing
        6.2.12 Counter Trade Policy
        6.2.13 Pertamina
        6.2.14 PT Freeport Indonesia
        6.2.15 Regional "Growth Nodes"
        6.2.16 Intellectual Property Risks
        6.2.17 Hiring Local Counsel
7 HUMAN RESOURCE ASSESSMENT IN INDONESIA
        7.1 Executive Summary
        7.2 Human Resources in Indonesia
        7.2.1 Unionization in Indonesia
        7.2.2 Collective Bargaining in Indonesia
        7.2.3 Workweek and Minimum Wages in Indonesia
        7.2.4 Forced Labor in Indonesia
        7.2.5 Working Ages and Child Labor in Indonesia
8 POLITICAL RISK ASSESSMENT IN INDONESIA
        8.1 Executive Summary: Government
        8.2 Executive Summary: Military Organization
        8.3 Democracy in Indonesia
        8.4 Political Issues in Indonesia
        8.4.1 Nature of the Political Relationship with the U.S.
        8.4.2 The Political System
        8.4.3 Politics and the Business Environment
9 LEGAL RISK ASSESSMENT IN INDONESIA
        9.1 Executive Summary
        9.2 Legal Issues in Indonesia
        9.2.1 Privacy, Search and Seizure
        9.2.2 Trial Justice in Indonesia
        9.2.3 Excessive Punishment in Indonesia
10 CULTURAL AND DEMOGRAPHIC RISKS IN INDONESIA
        10.1 Executive Summary
        10.2 Cultural Issues in Indonesia
        10.2.1 Racial, Ethnic and Discrimination Issues in Indonesia
        10.2.2 Women's Rights and Gender Issues in Indonesia
        10.2.3 Religion in Indonesia
        10.2.4 Fundamental Human Rights in Indonesia
11 HISTORICAL BACKGROUND
        11.1 Social and Political History
        11.1.1 Social History
        11.1.2 Overview of Key Historical Events
        11.1.3 Historic International Relations
        11.1.4 The Role of the Military
        11.1.5 Historical Relations with the U.S.
        11.2 Business Customs in Indonesia
        11.2.1 Local Business Practices
        11.2.2 Travel Advisory
 

 

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