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Indonesia Has Become A Producer Of Labor Intensive Industries Such As Textiles And Shoemaking.

2011/11/15 11:37:00 24

Textile And Shoemaking Labor Intensive Industries Producing Countries

In terms of foreign direct investment, although China and the United States remain the main destinations, Eastern Europe, Brazil, Vietnam and Indonesia have gradually risen.


In recent years, as the political situation tends to be stable and the middle class continues to increase, Indonesia's economic fundamentals are developing well, and foreign enterprises' investment in Indonesia has gradually expanded.


Indonesia has become a target country for foreign investment. Indonesia's political environment has gradually stabilized since the end of the Suharto administration. There are 3 reasons why countries have begun to pay attention to Indonesia's economic situation.


1. Indonesia has 23 million people and the market potential is huge. Even in the worst financial tsunami of 2008, countries are facing economic recession, and Indonesia's economic growth rate is still up to 4.5%.


2. Indonesia has become one of the main production bases. In recent years, due to the rise of wages in the coastal areas of China and Vietnam, and the gradual reduction of labor force, such as textile and shoemaking labor intensive industries have been gradually transferred to Indonesia and other places.


Indonesia's lack of infrastructure is one of the bottlenecks of economic development. The Indonesian government plans to promote the development of infrastructure such as railways, roads, electric power and energy through the power of private enterprises, and strengthen the system of land expropriation.
 

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