Applying Global Business Principles In Indonesia

While developed countries are seeking alternatives of environment friendly energy resources, Indonesia is still busy with the discussion to build a nuclear reactor although the alternatives of natural energy resources in Indonesia are very many.

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By : 

Ricky Virona Martono       Trainer, Executive Development Program

TThis writing was published in Pajak Magazine Vol. XXXIV 2017 p. 46-47.

There are two industrial issues that often come up and they can be an input for Indonesia industries. First is the threat of relocation of some manufacturing factories from Indonesia to other Asean Countries like Vietnam and Thailand because of the regulation problems

The second issue is South Korea’s plan to close some nuclear reactors with the reasons that the nuclear reactor safety certifications were fake and also they were considered to have high risks. On other parts of the globe, Germany has carried out its plan to close all nuclear reactors step by step until the mid of 2020 and has had an initiative to seek other energy resources which are environment-friendly.


In the basic concept of industrial development, the United Nation (PBB) supports a business process running of each company which cares of its environment. This thing is poured in “Ten Principles of The United Nation Global Compact”, which consists of four head lines; Human Right, Labour, Environment and Anti-Corruption. This concept is a kind of a whole coordination between international communities and societies and the business world.

It was recorded there were 135 countries in the world which participated and signed the agreement, including Indonesia. The content of it is not like standardized regulations, but it is more like an initiative and a commitment of the business doers to be transparant, to follow the effective rules and to provide a media for innovations for all who concern.

There are two principles which become the main attentions. First, on labour principle it mentions an issue that a business body must provide a media / an association which is able to accommodate aspirations and is able to reach agreements from parts all parts, they are the business owner, employees, people in the neighborhood and all that have interests.

For example, there are income and working satisfaction of employees in other kinds of rewards beside salary. It seems that Indonesia has not fully been able to fulfill this point because the media used by the industry doers to ask legal guarantee and security guarantee did not give positive result.

The second, environment principle, it is to boost environment friendly business application and development. Germany and Korea have run the businesses which have fulfilled this environment principle by closing some of their nuclear reactors. While the developed countries have sought the environment friendly energy resource alternatives, Indonesia is still busy discussing to build  a nuclear reactor although the alternative of natural energy resources in Indonesia are many.

Beside needing high discipline to run a nuclear reactor, Indonesia is also easy to have earthquake and tsunami natural disasters at many spots. So, the risks of building up a nuclear reactor is high enough.

Until now, Indonesia is still not able yet to fulfill the global business principles. We even have taken a step backward to build an environment friendly world for the future generations because of the plan for using nuclear energy.

Although not running a good manufacture principle yet, Indonesia still becomes a foreign investment target because of the nature condition and the number of its people which is big. These make Indonesia seen good as base production of raw material from nature production and at the same time a market to sell the finished goods. So, if the raw materials are provided by Indonesia, while the production process is done in another contry, and then the end products are sold back in Indonesia, this is the same as we provide other people’s means of productions and at the end, we also buy their products. Indonesia just becomes the labour and consumers in our own country and is used by other countries.

Let’s start to develop industries which just do not think about profit. For this, it needs a whole strategy for all parts who care of Indonesia industrial condition and must be started now before we are left behind from our neightboring countries and lose in the global competition.