The Importance Of Urbanization In Indonesia

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As population grows, there is more demand for household products. Families and children are made at the age of 22,3 (Ibid). Additionally, Cities are increasing in size, with Jakarta as the main economic hub, as Indonesian urbanization rate is growing. Research by The World Bank Indonesia (2014) is expecting that Indonesia’s total urban population will reach 182,6 million by 2025. This means that the 67.5% of the total population of Indonesia will be located in urban areas. (The World Bank, 2012) This amounts to an increasing demand in the Real Estate industry as the demand for property will increase significantly. This also goes together with an increasing demand of household products and beds.(O3) In Indonesia, there is freedom of religion and expression. The vast majority of Indonesia are of the Islamic belief. Religion plays a significant role in business, as individuals implement their Islamic practices on a daily basis. This is also the reason of Indonesia’s collectivist nature of their culture, as most individuals are part of the Islamic community. Every Muslim is therefore expected to act according to the Islamic law and which is Halal (any object or an action which is permissible to use or engage in, according to Islamic law). Businesses are expected to have a…show more content…
However, according to Syafrinaldi (2011), Law professor at the university of Riau, states that “massive breaches of intellectual law occur in Indonesia” (para. 16). This is especially when it comes to computer programs. 85% of the computer programs used in Indonesia are illegal. Despite the laws implemented by the Indonesian government, businesses are uncertain for the conduct of business as the government lack to give legal backup (ibid). Taking legal action can be time consuming and costly as well. Therefore, new designs can be protected by law, however, once intellectual property right infringement is committed, companies are uncertain of legal back up.
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