Challenges of Indonesian Managers

First of all, in the era of globalization and free trade, the foreign products could come easily to Indonesia. Since the agreement of ASEAN and China free trade (ACFTA) began on January 1, 2010, the import product from China flooding domestic market. The president of Indonesia, said on his speech that we cannot stop the entry of foreign products to Indonesia. As a result, there are so many import products in domestic market, especially from China. Those products mostly are power tools, iron products, steels, textiles, ceramics, garments, handicrafts, fertilizers, aluminums, food processed, and beverage products. In general, China almost exported all of the primary needs of people. At the same time, there are just a few of local products that can be imported to China. Mostly are just oil, energy, and raw material.

In terms of quality, actually local products are better than foreign products. Unfortunately, the price of foreign product especially from China are cheaper than local products, and it makes people sometimes are prefer to choose foreign products rather than local products. This is because mostly, the purchasing power of Indonesian people is still low.

The other challenges that also important is coming from Indonesia. Nowadays, Indonesia is trying to improve their performance of production, especially to improve the independence of business through many economic policies, such as provide credit for micro business, credit for farmers, and other government subsidies. These efforts aim is to help the micro entrepreneurs or small businessman to get the capital for to run businesses. It makes them to be more productive in producing local goods or service. This is a good regulation from government, because it can encourages people to be more creative in running a business, help to reduce poverty, and expand the job opportunities.

However, from the other side it can be a challenge for Indonesian managers. As the growth of small businesses in Indonesia, it means that the number of goods or service that has been produced in Indonesia will increase as well as the rivals. The goods or service that produced from small business are mostly more populist in terms of price, so it can reach the purchasing power of Indonesian people.

In addition, distribution also can be a challenge for Indonesian managers. As we know, Indonesia is a maritime country. To distribute goods from one place to another place is not easy. The limited facilities and infrastructure in Indonesia do not support this issue. This is certainly inefficient in terms of cost and time, because it will takes more expenses and more time to distribute goods to another place. As a result, after the goods arrive in its destination place, the price of the goods will rise above its normal price, and it is often considered as not profitable for consumers.

The increasing of rivalry and the distribution issue are important, as well as the human recourses

...