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1
OF
PESTLE ANALYSIS
IN
INTERNATIONAL MARKETING
SUBMITTED TO:
MAM POOJA
(ASSITANT PROFESSOR)
SUBMITTED BY:
ANMOLDEEP
ROLLNO -141356
MBA4 C
2.Economic Environment of IB
Forms of economic System
3. SOCIAL-CULTURAL FACTORS
4. TECHNOGY FACTORS
Advantage of Technology
In terms of Economies of Scale
New Discoveries & Innovations
Speed & Cost of Technology Transfer
Rate of Obsolescence
PESTEL Analysis:
Political and Legal factors:
Indonesia is considered as Republic country. It declared its independence on 17th August 1945
from Japan so 17th August is the national holiday. Indonesias legal rules and regulations are
based on Roman-Dutch law. Their constitution has abrogated by Federal Constitution in 1949
and Provisional Constitution abrogated in 1950 which restored on 5 July 1959.In Indonesia after
every five year election is being contested for president and vice president post by direct vote of
the citizenry. \
Economical factor
Indonesia's debt-to-GDP ratio in recent years has declined because of increasingly robust GDP
growth which was 6.1% ($915.9 billion) in 2008 compare to 5.5% ($811.1 billion) in 2006 and
compression to the world they are on 54 th position in GDP growth. 14.4% of GDP earning from
agriculture, 37.5% from service sector and the major part 48.1% comes from industry. If we talk
about per capita income, it was $3,500 in 2006 which was increase up to $3900 in 2008 and
comparison to the world it is on the 157th rank in per capita income. \
Social factor:
Indonesia has a large population, which is increasing at a steady rate. It is on the 5 th position all
over the world with total 240,271,522 populations which is growing at 1.13%. The birth rate in
Indonesia is 18.84births/1,000 and the mortality rate is 29.25 deaths/1,000 populations. The total
life expectancy rate is 70.76 years in which for male its 68.26 years and for female its 73.38
years. 52% of total population live in urban areas which are increasing at 3.2% every year.
Indonesia is considered as nation of young people. The total median age is 27.6 years in which
for male it is 27.1 years and for female its 28.1 years If a country has good literacy rate then it
has bright future. Same thing apply on Indonesia. 90.4% of its populations are literate in which
male are 94% and female are 86.8%. 3.6% of their GDP is spent on education. Indonesia is a
multi culture and religion country where people from different religion work there. If we talk
about majority it is a nation of Muslim with 86.1%, Protestant 5.7%, Roman Catholic 3%, and
Hindu 1.8%,
Technological factor:
Indonesia has effective and highly developed transport system with 139 airports, railways with
8529 km and water ways covering 21579 km and major ports are Banjarmasin, Belawan,
Ciwandan etc. It has one of the largest merchant moraine with 971 in which 114 is already
registered in foreign country. The communication system in Indonesia is highly developed which
maintained 17.33 millions of people use landlines where as 83.3 million of people use Cellular
mobiles in the same way there are 13 million of internet users which is good sign for a country. If
we talk about media sources it has 678AM and 43 FM channels. Similarly it has 54 local TV
stations (11 national TV networks; each with its group of local transmitters)
Environmental factor:
Geographical location: Its geographic environment is one of the most complexes and varied in
the world. By one count, it has situated in South-Eastern Asia between the Indian Ocean and the
Pacific Ocean. It has total 1,904,569 sq km area in that land is 1,811,569 sq km and water is
93,000 sq km. Basically it is hot and humid country. At least 669 distinct languages and well
over 1,100 different dialects are spoken.