Social Factors

Population-transiting from lower to middle income group

Male vs. Female 101:100

Literacy rate is 90.4% however the quality of higher education is
questionable
High crime rate (corruption and bribery is 80.36%)
Cultural aspects of youth (global/local)- are they accepting international
growth idea????
Progressive and concentrative youth-?????

Unemployment Rate in Indonesia increased to 6.18 percent in the

third quarter of 2015 from 5.81 percent in the first quarter of 2015

 Youth Population- 43%

By the end of 2016 youth population will be 43 Million below the age of 30

Indonesias large, youthful and growing population may serve as a key opportunity to enhance both
its production and consumption base. However, like most opportunities, Indonesias population must
be properly developed to maximize its potential gains to the country at large, while managing rural
development so as not to disadvantage some of its less populous regions.

Economic factors
The currency of Indonesia is the Rupiah (IDR)
GDP is 888.5 billion.
The economic growth rate is 4.73% in July 2015
In 2014 the World Bank declared that Indonesia had the 16th
largest economy in the world.
GDP (PPP): $2.7 trillion
The per capita income, was US$ 3,491 in 2014. (World Bank)
FDI Inflow: $22.6 billion
Lower middle income is 254.5 million

Consumption level is 5%

 President -Joko Widodo (Indonesian Democratic Party of Struggle)

Economic Policy Package Indonesia : (In response to the ailing global economy, Indonesian
President Joko Widodo has unveiled a new economic policy package that aims to boost economic
growth of Indonesia amid a highly uncertain global context.)

Starting a business or legal entity in Indonesia can be a hazardous undertaking for foreigners, in
particular to newcomers in Indonesia who lack profound experience with the country and do not have
useful contacts or a network to rely on. Indonesia is not the world's most business-friendly country
(reflected by the weak ranking in the World Bank's Doing Business Index) and contains specific
cultural dynamics which - to an outsider - can make matters complicated.
There are two legal entities that are permitted for foreigners in Indonesia: (1) a foreign investment
limited liability company and (2) a representative office

Political and Regulatory

Environment.
Non conducive or conducive
Encourage growth
Trade restrictions
Ease of doing business???
High tax rate????
Is Indonesia a part of trade block???

Technological Factors
Smart phone users?
Penetration of internet?
Usage pattern?

Snap shot of watch market in

Indonesia

Growth rate Size Segment of watches Major brand (international or local)

Market composition
Key players
Trend in watch market

SWOT
Strength (fastrack)
Weakness (fastrack)
Opportunity (Indonesia)
Threat (Indonesia)

PORTERS Five Forces

Threat of entrants (low/medium/high)
All five analysis???

Conclusion and our understanding??

Enter or not???????? Justify
Competition
Potential of market