Indonesia

Indonesia has the largest economy in Southeast Asia and also the member of G-20 major economies. Indonesia’s estimated Gross Domestic Product (GDP) for 2007 is US$408 billion (US$1,038 bn PPP).In 2007, estimated nominal per capita GDP is US$1,812, and per capita GDP PPP was US$4,616 (International Dollars).The services sector is the economy’s largest and accounts for 45.3% of GDP (2005). This is followed by industry (40.7%) and agriculture (14.0%). However, agriculture employs more people than other sectors, accounting for 44.3% of the 95 million-strong workforce. This is followed by the services sector (36.9%) and industry (18.8%).Major industries include petroleum and natural gas, textiles, apparel, and mining. Major agricultural products include palm oil, rice, tea, coffee, spices, and rubber.

Demographic Data

Economic Data

Cultural & Other Data

GDP (PPP, $bn)

915.9

Capital

Jakarta

Area (sq. km.)

1,919,440

GDP Real

Growth (%)

6.1

Other Large Cities

Surabaya, Medan, Bandung

Population (million)

240

PerCap GDP ($)

3,900

Primary Language

Indonesian

Population

Growth %

1.136

Prime Lending

Rate (%)

15.13

Urban

Population %

52

% Population

Under 15yrs

28.1

Inflation Rate%

11.1

Urban Growth %

3.3

Population below

poverty line (%)

17.8

Unemployment%

8.4

Literacy

(% of population)

90.4

Agricultural Workers

(% of population)

42

Foreign Direct

Investment($bn)

63.46

Education spending

as % of GDP

3.6

Industrial Workers

(% of population)

19

Debt-External

($bn)

151.7

CPI Score

(1-10)*

2.6

Service Workers

(% of population)

39

Exports ($bn)

136.8

Corporate Income Tax %

28

Labor Force (mil)

112

Imports ($bn)

128.8

Ease of Doing

Business Ranking **

129

CURRENCY EXCHANGE RATE

06/23/09 $1 = 10510 IDR

Franchising Laws Overview

Disclosure laws:

  • Franchisor must disclose certain information to prospective franchisees sufficiently in advance.

Relationship laws:

  • 10-year term for a master franchise
  • Requirements of local language and local governing law
  • The intellectual property right under the franchise must be registered.
  • A franchise must be proven “profitable.”

Registration Laws:

  • Franchisor must register franchise-offering prospectus before signing a franchise agreement with franchisee.
  • The franchisor shall register the franchise agreement.
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