Indonesia’s macroeconomic situation is in a promising phase. Based on the last five years, there seems to be steady growth, which may indicate that Indonesia is slowly but unquestionably coming out of tough times. The Gross Domestic Product in 1999 was at $663 billion (2002 est.) (See Exhibit A) The political, social and security climate of Indonesia is risky by many people’s standards, but the situations are improving. These conditions have yet to be resolved resulting in high degree of economic and financial risk. There are different reforms encompassing broad-based areas such as “political reform, regional autonomy, fiscal transparency and financial monitoring, legal reform as well as financial sector reforms.” These changes provide optimism for investors. Indonesia is very risky. For decades, Indonesia has been trying to combat co

Security remains a major concern for investors, particularly following the terrorist attack in Bali in October 2002, the JW Marriott bombing in August 2003, and renewed military operations in Aceh. The Megawati administration aggressively pursued those responsible for the Bali bombing, and found a significant presence of al-Queda-linked terrorists capable of carrying out further attacks.

Islam is the predominant religion in Indonesia with 88% of its people being Muslim. This Muslim presence is felt throughout the country and in all its operations. For example, in Islamic culture, obligation to the family is very important. This may make it difficult to obtain background information on someone from their family because people are traditionally more loyal to their family members. Another way in which religion affects Indonesian life is through the education system. Education is an important factor in Indonesian life which affects the marketing of our service in two main ways. First of all, there is the problem of Islamic boarding schools in Indonesia where many terrorists come from. A company or government organization that is looking to hire someone needs to make sure that they do not have terrorist ideas because this could lead to instability within the organization. A background check would be the best way of preventing the hire of these kinds of people creating an important market for our service. A second way in which education affects our service is that the literacy rate in Indonesia is relatively high at 88%. The reason the literacy rate is relevant is because it suggests that companies are hiring more educated people with more responsibility. This suggests that companies are creating new jobs and thus looking for more qualified employees. For these employers, a background check would be helpful in screening potential employees.

The same name should not be used because Indonesia might not be as accepting to a company that has the words US in the title. Not much would be lost from using a different name because, most likely, most people haven’t heard of USIS in the first place. Since it neither has a global name, nor does it have a global brand, it would be smarter to have a name that doesn’t have the potential of promoting an unfavorable bias towards the company. Another reason the name should be changed is that it is somewhat misleading. With a name like US Investigations Service, it seems as though the company only provides the service for American customers, but this is not true. The American companies in Indonesia will be only a small part of our target market, and we want other international businesses, Indonesian companies, and the Indonesian government knows this.

One of the cost factors are the taxes that we have to pay the government. These include sales tax, employment tax, income taxes paid by employees, business taxes, and property taxes. Although labor cost is low in Indonesia, we should consider the initial high employee training costs. This is a service that is not common in Indonesia, and it's also something that requires people to be fairly knowledgeable about the law to prevent breaking privacy laws. Employees will also have to be taught how to obtain information discreetly if this is necessary. In Indonesia's highly corrupt environment, we have to include bribery costs beforehand. Many other companies in Indonesia lose a lot of money due to bribery and other forms of internal corruption. For example, some foreign companies in Indonesia have complained of frequent demands for "facilitation fees" to obtain required permits or licenses, government award of contracts and concessions based on personal relations, and an arbitrary legal system. Also important are advertising costs. Advertising in Indonesia, though useful, is very expensive. However it is necessary since an investigation services firm is a fairly new idea in Indonesia. We will also have a significant am

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