Setting up a Retail Manufacturing Unit in Indonesia

Introduction:

This report sets out to explain why Indonesia is our best choice for setting up the new manufacturing unit.

Findings:

First of all, labor in Indonesia is cheaper than in our domestic market, but the performance quality will still meet our expectations. Second, the government policy favors the development of the retail industry. For example, there are tax rebates on the leasing of land. However, the stability of the regime could be a concern.

Recommendation:

Although the government is not as stable as ours, we still recommend Indonesia to be an ideal location for its stability issues will have no direct impact on our operations.

Conclusion:

To sum up, the overheads in Indonesia is lower than that of Taiwan.

Group members：Hayes, Elaine, Evelyn