It is clear. With Indonesia’s enormous natural resources, cheap labor and growing middle class, the potential is exceptional. If the challenges can be handled, the opportunities are too big to neglect. Indonesia and its insurance industry is absolutely attractive and I would recommend for future investments. The report has limitations. This provides general overview of Indonesia based on limited data. Other challenges found but not discuss here are corruption, infrastructure and the legal system. All these are critical to Indonesian development.
Indonesia seems to be slowly improving on all these issues. Anti-Corruption in Indonesia are rapidly increasing in range and intensity with more democratic society. 2. Introduction of Indonesia The country of Indonesia stretches across more than 13,000 islands between the Indian Ocean and the Pacific Ocean. With more than 220 million people, Indonesia has the fourth largest population in the world, behind China, India, and the United States. The islands of Indonesia were formed along a line where two continental plates meet on the ocean floor.
The islands are highly volcanic. The soil around the volcanoes is rich in nutrients, and the rainy, tropical climate along the equator is ideal for farming. Indonesia’s rice paddies produce crops year-round, and other crops include soybeans, sugarcane, and peanuts as well as rubber, coffee, tea, and tobacco. Many of the islands are covered in tropical rainforest, with a rich diversity of plants and animals. Throughout its history, Indonesia has been a center for trade and exchange of ideas, and the islands still have a mix of traditions today.
The Term Paper on Unity and Diversity of Indonesia
... Indonesia’s many islands and its diversity. It’s numerous chain of islands contained in the thirty-two thousand miles dividing two oceans, the Pacific Ocean ... village near the border of Papua New Guinea. Indonesia’s 13,677 islands inhabited by 350 different ethnic groups, and ... are of high quality, however. As a multi-island country, Indonesia depends particularly on interisland shipping for commerce ...
The Buddhist and Hindu religions traveled to Indonesia from 600 to 1500 CE. In the 1200s, Muslim traders brought Islam, and the religion spread throughout Indonesia, except for the island of Bali, which remained predominantly Hindu. European explorers arrived in the early 1500s, and by the end of the 1600s, the Netherlands (also known as “Holland”) in Europe controlled most of the islands. The Netherlands ruled the islands of Indonesia for nearly 350 years, until Indonesia declared its independence in 1945 after World War.
In recent decades, Indonesia has been viewed as one of Southeast Asia’s most successful highly performing and newly industrializing economies. It is the largest economy in Southeast Asia and a member of the G-20 major economies. It features a developing market economy, with strong influence from the government. The government plays a vital role by owning more than 164 enterprises. The government controls the prices of many basic products, such as rice, electricity and fuel. Domestic consumption is one of the major driving forces behind the country’s economic growth.
Although Indonesia’s economy grew surprisingly fast during the 1980s and 1990s, it experienced considerable trouble after the Asian financial Crisis of 1997, which led to political reforms. The global financial crisis in 2008- 2009 had a relatively small impact on Indonesia because of its heavy reliance on domestic consumption as the driver of economic growth. Although the economy slowed from the 6 percent growth rate recorded in 2007 and 2008, they managed to withhold a 4 percent growth rate in 2009.
Indonesia outperformed its regional neighbors and joined China and India as the only G-20 members posting growth during the crisis. The government made economic advances under administration of President Yudohoyono, introducing reforms in the financial sector, including tax and custom reforms, the use of treasury bills, and capital market development and supervision. Indonesia’s debt- to- GDP ratio in recent years has declined steadily because of increasingly robust GDP growth. Indonesia is working toward expanding the coverage of their safety net.
The Essay on Difference Between Economic Growth and Economic Development
Economic Growth is a narrower concept than economic development.It is an increase in a country’s real level of national output which can be caused by an increase in the quality of resources (by education etc.), increase in the quantity of resources & improvements in technology or in another way an increase in the value of goods and services produced by every sector of the economy. ...
The workers will be better protected In case of losing their jobs, government introduced various forms of unemployment insurance. Indonesia has a large economy that many analysts predict will grow further in the future. Especially, they believe the country’s democratic political system and natural domestic market will encourage stable economic expansion. Indonesia has made great strides in economic growth and development. In the past twenty years, it has achieved it development objectives. The income per capita has risen from US$ 1898 in 2007 to US$ 3509 in 2011. 3. Insurance Industry Asuransi is an Indonesia word for insurance.
Insurance started in the Dutch colonial period, associated with the success in the plantation sector and its related trading business;. Historically the oldest domestic insurance company was established at the beginning of 1912, and later on, the company is known as Bumiputera 1912. During World War II, activities of insurance practically stalled, mainly because of the closure of the insurance companies owned by Dutch and British. In 1984, American International Assurance Co. , Ltd. (AIA) made joint venture with the forerunner of Avrist and became the first multinational insurance company.
However, despite a plethora of offerings in Indonesia, the world’s most populous Muslim nation, Islamic insurance concept is still in its infancy. Lack of a formalized structure is the key issue. Indonesia’s regulator is opting for equality between Shari’a-compliant and conventional financial products in a balanced and healthy competitive environment, enabling Islamic insurance to grow in line with the conventional insurance. 5. Conclusion and Recommendations
The Essay on Mutual Insurance Company of Iowa
The Mutual Insurance Company of Iowa has experienced a significant growth in sales within the last year, and in turn, has experiences a significant increase in insurance claims. After careful consideration and evaluation, the Mutual Insurance Company has elected to incorporate significant operational changes to meet the demands of the increased volumes. Specifically, incorporation of a lean ...
Indonesian insurance industry is stable, considering the large business growth potentials, sound capitalization, adequate profitability, and limited impact from the global financial crisis, which are also supported with stable macroeconomic conditions and recovering capital markets. Although the market size is still small compared to other countries like China or India, it has been growing steadily since pre-Asian crsis. Definitely it will continue the growth. For the better development of Indonesia insurance industry, there are some recommendations. Insurance companies should enhance their market position.
Since the company’s market share in the industry could determine the strength of its business franchise and brand image, stable premium growth rates and number of policy holders would be used to measure its ability to grab potential customers and expand its business. Besides, they should build a strong distribution channels which can create economies of scale of its product sales. Also, it should enable itself to maintain competitive cost structures. In addition, the insurer’s investment strategy should also provide contribution to total company earnings and at the same time maintain the risk of its portfolio at a manageable level.
