Human Resources Challenges : Indonesia

Indonesia is now the 15th largest economy on the planet with a global output of just under 1.5% but is expected to rise in the coming years. Manufacturing is the largest single component of Indonesia’s economy with its main exports including crude petroleum and natural gas as well as rubber, coffee, cocoa and palm oil while Australia mostly benefits from exporting mineral fuels, gems, precious metals and meat. Indonesia received $187.3 billion USD from exports in 2012 ranking it 27th in profit from global exports but Australia placed 22nd and profited a total of $257.9 billion USD from its exports leaving Indonesia in the dust. Although Indonesia has showed significant growth recently their quality of life is still worse than Australia’s due to a lower Gross Domestic Product or GDP. GDP is the total value of goods produced and services provided within a country in the duration of a year and determines the strength of a countries currency.

Indonesia is the largest country in South East Asia and the third most populous in the world. Indonesia’s geographic proximity to Australia makes its bilateral relationship with Australia an important one for both

According to AAFC (Agriculture and Agri-Food Canada, 2010) due to its extensive natural resources and geographical location, in the way of several of the world’s most important trading routes, Indonesia represents the Southeast Asia’s largest economy. On a global perspective, Indonesia is the fourth most populated country and has the largest Muslim population, besides being the world’s largest archipelago, with around 17,000 islands. The country’s GDP (Gross Domestic Product) is also showing considerable and stable growth throughout the years and unemployment rates dropped considerably (AAFC, 2011).

The main problems do seem to be on the surface but actually the problem that really big moral communities exist in Indonesia are so damaged. The humanitarian crisis that is very influential to the development of the Indonesia future now this fact impressed ruled out by the apparatus of Government. This would lead to its nation will be worse and is seen low by other Nations.

While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the

Indonesia is the sixteenth largest economy, the largest economy in the South-east Asian economic region with the world's fourth largest population (263 million in 2017). It is an emerging economy that has increased its international integration, trade liberalisation and diverted from policies of import substitution towards export-led development. Indonesia is a member of the Group of 20 (G20) major economies and has been an active founding member of the World Trade Organisation (WTO). The impact of globalisation has benefited Indonesia as quality of life indicators and economic developments have improved but it also presents the challenge of improving regulations, building more competitive industries, increasing investment into education and infrastructure to remain competitive. Consequently, Indonesia has introduced numerous strategies to promote economic growth and development.

In an era of increasing competitiveness, globalization, economic rationalization, deregulation, technological revolution and changing workforce there is an ever-increasing need for human resource management to be able to capitalize on the special challenges that this changing environment brings. For a company to be able to successfully keep ahead of the competition, human resource management is seen to be a significant contributor.

Indonesia has been independent for just over half a century. In this short time the country has had to adjust to the demands of the modern world.

Abstract: Human Resource Management is fast gaining popularity and its importance is becoming unavoidable, this is due to the fact that Human Resource Management plays a huge role in the growth of any company irrespective of its size. Unfortunately it is yet to achieve global standards or strategy of operation; this can be attributed to the various differences between environmental factors, employment attitudes, cultural

Since 1965, the president of Indonesia continued to provide continuity and stability. However, in order to define an effective and complex growth plan, a company wishing to be successful needed the president’s support to succeed in the plan.

Indonesia has a massive population of 249.9 million people. Indonesia’s human rights are mostly abused because the government hasn’t done enough to help protect those rights. Indonesia has the largest economy in south East Asia and is one of the emerging market economies. Some people in Indonesia are wealthy but the majority of people in Indonesia are poor.

There are human resource issues that are impacting the company on a global level. These issues range from change management, leadership development, HR effectiveness measurement, organizational effectiveness, compensation, staffing: recruitment and availability of skilled local labor, succession planning, learning and development, staffing: retention, and benefits costs: health & welfare (University Alliance, 2016). Many of these issues arise from cultural differences during expansion into new foreign markets or when the currently targeted markets shift. To rectify these issues the company currently addresses each situation on a case-by-case basis. In the past, this has addressed the issues at hand. Due to cultural

Ever since Indonesia has opened its economy to global forces in the mid-1980’s, the country has experienced the growth of trade and investment and the increased participation of transnational corporations in the economy. Reforming the economy has been necessary so that Indonesia can keep pace with other economies in the South-East Asian region and avoid relying too heavily on commodity exports, whose value on global markets tends to be volatile.

In this changing world, our global business theories and literature have implications toward the future. The future of this growth and success depends largely on the key component which is Human Resource Management. So, we as researchers hope to enlighten and inform you as employers the significance of an effective solution that both understands your employees and is beneficial to your company. That is why we offer our recommendations in the end of this article based on our findings.

GDP: Indonesia has made significant economic advances through last years. 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 54th 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. (The World Bank, 2009)