SWOT Analysis Indonesia

8/2/2019 SWOT Analysis Indonesia

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SWOT Analysis - Indonesia

Presented byKuo, Che-Hung

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Introduction

• Textile plays a key role in driving the economy• Globally, the country accounts for

• 13% of viscose staple fiber production

• 4% of polyester staple fibers

• 4% of polyester filament yarn• 2% of polyamide and

• 0.03% of cotton

• Textile industry employs 1.8 million workers.

• In 2007, garment and textile exports reached $10.3billion, making Indonesia

• 12th largest textile exporter

• 8th largest clothing exporter globally

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Strengths

• A primary strength - vertically integrated garment andtextile industry

• Has a large domestic market; helps in offsetting anyexport slump

• Is politically stable and is developing policies to attractforeign investment

• Also has a large labor supply

• Abundance of natural resources

• Indonesia’s banking sector remains healthy – There have been no government bailouts

– Credit is abundant

– There have been no widespread business closings

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Weaknesses

• Aging machinery that limits production andsaps energy

• Rising energy costs

• Relatively higher interest rates than manyof its neighbors

• Lack of supportive infrastructure• Absolute dependence on imported cotton

for both its export and domestic needs

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Opportunities

• ASEAN continues to develop as a textile and garmentmanufacturing hub, so opportunities for global andregional exports should improve

• Initiatives such as a modernization scheme shows thegovernment is beginning to pay more attention to thesector

• Has been able to take advantage of opportunities whenthey appear – In 2005 and 2006 when the US and EU imposed safeguard

quotas on several textile and clothing products from China,Indonesia used the action to increase its exports to both regions

• The country’s massive domestic market offers an

obvious opportunity

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Threats

• Rampant smuggling in the region• Lower-priced products from China poses serious

competition

• The emergence of Bangladesh, Sri Lanka, andVietnam is another threat in an already crowdedmarket

• Low exchange rate of currency

– rupiah fluctuates so much – the gap between buying and selling is so large

adversely affecting businesses that rely heavily oncash-on-hand

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Bibliography

• http://sourceasean.com/wp-content/uploads/2010/10/SourceASEAN_Indonesia_profile_100811.pdf

Note: URL as on 8-02-12

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http://sourceasean.com/wp-content/uploads/2010/10/SourceASEAN_Indonesia_profile_100811.pdf









Thank You !

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Documents

SWOT Analysis Indonesia