Rohan's Blog

Political factors affecting business in Indonesia

Indonesia has passed through a serious transformation post 1998 which saw the fall of General Suharto after his dictatorship for 30 years and the drastic fall of ‘rupiah’ the currency of Indonesia. The united states is now a vivid democracy that is persevering with to strengthen its political buildings and deepen the enfranchisement of the population. Over the past few years, a lot of experiments for setting up a democracy has resulted in the rise and fall of  various religious groups in the country. The election held in 2009 has showed a maturity in the citizens of Indonesia through the re-election of Susilo Bambang Yudhoyono who became the first ever president to be elected democratically not once but twice. This has significantly increased the confidence of every global leader to invest in the country. Susilo Bambang took good measures to counter terrorism and restore peace in the country, this helped attracting foreign direct investment to a great extent. There were many other measures such as decentralisation of political power to give more freedom and power to regional leaders helped to understand the true needs of the Indonesian citizens in a much simpler and better way and resulting in the upliftment of the most backward regions which were not given enough attention earlier. (Palmer, n.d.)

(Gbgindonesia.com, 2019) stated that the political situation definitely has its drawbacks such as the pace of financial and political reform beneath President Yudhoyono’s coalition had a lot of criticism from all parts of the globe for not giving enough attention to the interests of coalition members. Political noises towards increased protectionism are ordinary occurrences that frequently end result in overlapping regulations which creates investor uncertainty. For the run in the election of 2014 it was clearly seen that citizens were unhappy with many bills which were proposed and were happy to change the fate of their situation through the election (Van Horn, 2002).

Another concern in the country was the gap between the rich and the poor, this gap was constantly increasing and is not a good sign in terms of the per capita income of the individuals living here. However, despite the quite a number push and pull forces to veer of course; the united states of America remains on a stable music whilst totally acknowledging its political flaws. The introduction of democracy helped the people to actually express their interests and put great pressure on the leaders elected to fulfil these needs. Media too is playing its role by providing a platform to the citizens to express their problems and providing debate platforms to serve the people and their interests. This can be seen as a healthy environment for further development of democracy and slowly eliminating the corrupt and unjust practices which were prevalent earlier. (Haseeb, Zandi and Hartani, 2019) states that even though the government improving its practices there few concerns such as the activities of the Arab spring which are serious protests against the government and these protests are usually done in a very violent manner. However these effects are part and parcel of the transition of a dictatorship to democracy and observers say it would not take long till these protests actually stop forever.

However a key researcher states that Indonesia has a lot of advantages for doing global business such as feedstock for value added manufacturing will also be indispensable in steering the united states thru its transition to a middle income and developed economy (Sherlock, 2019).

Political factors affecting business in the United Kingdom

It’s a known fact that the United Kingdom has left the European Union in June 2016. Ever since the exit the authorities, citizens and the government have been trying to understand the implications this would have on global businesses and the economy of the country in general. The UK Parliament has, seeing that January 2019 rejected three instances the ex-Prime Minister Theresa May’s Brexit Deal, recognised as the withdrawal agreement), growing uncertainty and the danger of the “no deal” situation between the UK and the EU (Hilton, 2019). However the MPs additionally voted in opposition to the prospect of the UK leaving the EU without any deal and in favour of a extend to Brexit, which explains why the UK did no longer depart the EU on 29 March as formerly planned. Due to the persevering with political deadlock, The EU and UK have agreed on a in addition prolong to Brexit till 31 October (Department of Foreign Affairs and Trade, 2019). Adding Theresa May, resigned to her position as the prime minister of the country, This opened gates for Boris Johnson who was then the former foreign secretary to contest in the race to become the prime minister. Boris was an active member of parliament who pledged to re-negotiate the terms of the Brexit which was an alarming concern not just within the country but all across the world (Jensen and Snaith, 2016). Such a strategy may however lead to the give way of the authorities and new well-known elections, the effect of which would be uncertain. The degree of uncertainty round the Brexit manner remains therefore high and the UK authorities is now required to acquire a consensus and point out a way ahead with regards to its future relationship with the EU.

Add the healing in the world economic system to the mix and Britain may want to discover that a rising tide lifts all boats, no count how battered they can also be. Manufacturers stand to benefit from promoting their goods abroad, helped by way of the pound’s weak spot considering the Brexit vote making British items greater competitive (Essay online gallery, 2017). There might also be bother ahead, however, due to the fact groups may want to put their investment plans on ice if worries about the UK’s future buying and selling regulations with the EU linger. Households are also nonetheless facing higher inflation and gradual pay increases, which ought to hold boom back.