Climate

Indonesia lies
near the equator which is why they have an all year round growing season and a
tropical climate with the coastal plains averaging 28°C, the inland and mountain area 26°C, and the higher mountain
regions 23°C. Rainfall near
the equator is plentiful and well-distributed throughout the year. However, the
rainfall gets seasonal as distance from the equator increases with maximum
amounts of summer and minimal amounts of winter. Frost only occurs at the peak
of high mountains. The area has relatively high humidity levels ranging from
70% to 90%. The Western and Northern parts of Indonesia face most precipitation
due to the northward and westward moving monsoon clouds which are heavier and
moister.

 

Economic
Information

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

The President of Indonesia is in charge of both
the state and the government. Indonesia holds a mixed economy which combines
both private and public enterprise. The current unemployment rate in Indonesia
is 5.5% which has been significantly reduced from 2016. This shows that
Indonesia is becoming more economically wealthy and productive by opening new
businesses. The GDP per capita in Indonesia is $3974.1 which is 31% of the
world’s average. The trade in the agriculture sector of Indonesia is 15%, the
industry sector is 47%, and the services sector is 37%. Indonesia mainly
exports woven clothing and apparel articles, electrical machinery and rubber to
Canada and its key imports from Canada are cereals, wood pulp, and fertilizer.
The trade balance between Indonesia and Canada is $365.7 which means that
Canada exports more than it imports from Indonesia.

Indonesia Exports to Canada

Indonesia Imports from Canada

Rubber – $96.6M

Wheat  –
$466M

Woven Clothing – $ 79.8M

Fertilizers – $311m

Electrical Machinery & Equipment – $77.1M

Woodpulp – $212M

 

Competitive
Advantage

Indonesia’s
competitive advantage is its access to natural resources specifically in the
energy sector. Indonesia has an absolute advantage because they are able to
extract and export crude oil and petroleum gas more efficiently than competing
countries. This surplus of key natural resources allows Indonesia to export
their surplus to the United States and China, their two key trading partners.
Indonesia has been active in the oil and gas sector for the past 125 years and
is known as the fifth-largest liquefied natural gas exporter1.
Indonesia consists of energy reserves of more than 7 billion barrels of oil and
about 150 trillion cubic feet of gas. Indonesia’s potential petroleum resources
are about 150 billion barrels of oil and nearly 410 trillion cubic feet of gas.
2Getting
these resources out of the ground and shipped to other places provides Canadian
businesses with the opportunity to invest in future infrastructure
developments. Canadian businesses have an opportunity to support the energy
sector by assisting in the development of needed infrastructure projects.
Energy demand and manufacturing activities are creating great investment
opportunities in the building of pipelines which is a reliable form of
transportation to distribute the crude oil and petroleum gas to other
countries. Moreover, vehicle ownership in Indonesia has increased significantly
from the past year creating a higher need of petroleum gas and creating more
business opportunities for Canadian businesses. Furthermore, new gas plants
will be desirable if the need for petroleum continues to increase. Using
Canadian experience, expertise and knowledge in building infrastructure, they
can look to invest in Indonesia and provide them with innovative pipelines and
storage, reserves or oil trading hubs to support the future of Indonesia’s
energy sector. This will help Indonesia to slow or prevent production declines
on mature fields of oil and gas. A number of Canadian businesses currently
operate in Indonesia, some of which include Manulife Financial, Sunlife
Financial, Husky, Talisman Energy and Sherritt. 
The competitive advantage offered by Indonesia can benefit Canadian
businesses in the energy sector in many ways. Indonesia is
looking for companies who have the skills and

Categories: Articles

x

Hi!
I'm Garrett!

Would you like to get a custom essay? How about receiving a customized one?

Check it out