Indonesia Case Study - Development Dynamics Flashcards

1
Q

What are some reasons to suggest why Indonesia is developed?

A
  • Indonesia is SE Asia’s largest economy
  • lots of exports to Singapore, Japan and USA
  • 15th largest growing economy
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2
Q

What are some reasons to suggest why Indonesia isn’t developed?

A
  • rural isolation and poverty so children leave to find work
  • lack of education and healthcare
  • extreme inequalities of wealth
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3
Q

What is the geographical location of Indonesia?

A
  • Indonesia is the largest archipelago and is located in SE Asia in the Southern Hemisphere
  • it borders the Pacific and Indian Ocean and is south of Singapore
  • it is on the equator between the tropics of Capricorn and cancer
  • it’s capital is Jakarta on the Island of Java
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4
Q

Why is the location of Indonesia strategic?

A
  • bridge between two continents (Asia and Australia)
  • half of shipping routes travel through Indonesian waters
  • close to major economies such as China and India
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5
Q

Why is Indonesia’s access to sea ports key for development?

A

As it means they have access to major trading routes (e.g. the straights of Malacca)
This means Indonesia can grow their economy through exports and imports

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6
Q

Why are Indonesia’s natural resources key for development?

A

Resources such as tin, coal and gold mean Indonesia can be highly profitable. This can provide economic growth
(E.g. 42% of minerals such as petroleum come from Indonesia)

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7
Q

Why is Indonesia’s tropical rainforests key for development?

A

As Indonesia sustainably utilise resources such as timber and palm oil, which are in high demand meaning they can benefit from exports and make huge profit.
Also the rainforests can attract tourism and it is home to rare species such as the Sumatran tiger.

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8
Q

How does being an archeological hinder development?

A

As there are roughly 1700 islands, 600 of which are populated Indonesia is burdened by managing each population equally. This can leads to extreme inequalities of wealth and limit some islands in development

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9
Q

What is a demographic?

A

Statistical data that is quantifiable and explains a structure relating to population

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10
Q

What is Indonesia’s GDP per capita compared to the world.

A

$5,200

$13,100

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11
Q

What is Indonesia’s literacy rate compared to the test if the world?

A
Indonesia = 92.8%
World = 84%
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12
Q

Why are TNCs investing in Indonesia?

A

As of a consumption boom as people have more of a disposable income due to their growing economy

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13
Q

How has Indonesia’s population contributed to development?

A
  • As 92.8% of people are educated and literate is can produce services for more skilled jobs
  • 60% of people are below 30 so there is a large workforce’s who are creative and connected
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14
Q

What is Indonesia’s Workforce like?

A

44% in primary sector
19% in secondary sector
37% in tertiary sector

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15
Q

Why might Indonesia’s employment structure might change over time?

A
  • rural-urban migration so primary decreases
  • secondary industries might increase as TNCs are investing in factories
  • tertiary increases as of boom in consumption
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16
Q

How has development affected fishing and marine pollution?

A
  • polluted ponds and contaminated coastal areas meaning there is a decrease in fish species
  • soil erosion from upland deforestation exacerbated the problems of siltation downstream and inti the seas
  • killed coral reefs
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17
Q

How has development affected traffic and cars?

A
  • increase in air pollution
  • Jakarta is the worst city in the world for traffic congestion
  • many due of carbon monoxide poising
  • many road accidents
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18
Q

How has development affected deforestation?

A
  • worlds largest emitter of greenhouse gases
  • Over 100,000 manmade fires out of control
  • unsustainable palm oil production
  • government have not introduced suitable punishments
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19
Q

How has development affected tin mining?

A
  • illegal tin mines found everywhere
  • very dangerous, 70-100 die every year
  • one if the best paid jobs for many Indonesians
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20
Q

How has development affected palm oil plantations?

A
  • 8 million hectors of palm oil plantations
  • endangered species (orangutans)and decrease in biodiversity
  • contributes $16.5 million annually to economy as is an essential ingredient if many consumer goods such as chocolate and lipstick
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21
Q

What are some of the reasons for inequality within Indonesia?

A
  • inequality of opportunity - not everyone receives the same opportunities and experiences
  • inequality in terms of labour - skilled and educated workers are able to get higher paid jobs but the rest are stuck with low paid jobs
  • high concentration of wealth- richest quintile has half of Indonesia’s wealth, corruption also drives this
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22
Q

How would better education reduce inequality?

A

As it lays the foundation for development.As people can get hugger paid jobs and get out of a cycle of poverty

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23
Q

How would making the tax system fairer reduce inequality?

A

It means governments can increase their social spending, this can improve people’s livelihoods and fuel development
(E.g. people are more educated and healthier)

24
Q

What is the trend in Indonesia’s GDP growth rate compared to the UKs?

A

UK- growth rate has remained stable with little rapid growth
Mean average growth rate = 0.6%

Indonesia- rapid growth rate but is still fluctuating and is in a period of industrial development
Mean average growth rate = 5.06%

25
Q

Why is Indonesia’s structure of economy changing?

A

As they are in a period of rapid industrialisation

  • more exports and generating more consumer goods
  • FDI has provided jobs in higher sectors and creates a positive multiplier effect
26
Q

What is a commodity?

A

A raw material product that can be bought or sold

27
Q

What are positives of growth?

A
  • service sector has grown
  • expanding working age population
  • growth has relied on commodities
28
Q

What are negatives of growth?

A
  • poor infrastructure makes FDI hard to attract
  • manufacturing exports are relatively low
  • lots of informal jobs
29
Q

How do informal jobs hinder growth?

A

Jobs aren’t contracted meaning pay isn’t constant and workers don’t pay taxes. This means there is less social spending as the government have less money. It also means less job perks such as maternal mortality so could create a higher infant mortality.

30
Q

How has globalisation impacted Indonesia’s technology and science?

A
  • new technology has allowed Indonesia’s employment structure to change. Less primary, more secondary & tertiary.
  • Globalisation means Indonesia has benefitted from science and technology around the world.
31
Q

How has globalisation impacted MNCS/TNCs?

A
  • People have moved to cities to take advantage of FDI and MNCs
  • MNCs/TNCs have invested in Indonesia and provided jobs, but they have also exhausted Indonesia’s natural resources.
  • locals don’t benefit
32
Q

How has globalisation impacted after the resignation of General Suharto?

A
  • After Suharto left power, the new government liberalised the economy.This means they made it easier to do business and import/export goods from Indonesia.
  • Suharto took out loans from the International Monetary Fund (IMF). People feel the rich for richer and the poor got poorer.
33
Q

What are the main resources that have led to Indonesia’s billionaire’s wealth?

A

Tobacco, palm oil and textiles

34
Q

What are the trends of life expectancy and fertility rate?

A

Life expectancy - steady increase

Fertility rate - gradual decrease

35
Q

What is the SIGI index?

A

Measures gender discrimination and gives a scale from 0-1 (anything over 0.35 is regarded as very high)

36
Q

What is Indonesia’s SIGI index and GDP per capita?

A

SIGI index = 0.1532

GDP per capita = $11,035

37
Q

What is the trend between GDP and SIGI index?

A

generally the higher the GDP the lower the SIGI index.

38
Q

Reasons why development has helped to reduced gender inequality?

A
  • formal and contracted jobs (contracted hours and pay)

- expensive, executive clubs for wealthy women

39
Q

Reasons why development hasn’t helped to reduced gender inequality?

A
  • women have less paid and more physically demanding jobs (sweatshop conditions)
  • women’s are married at a younger age then men -16
  • Indonesia is still very traditional- culture plays against women
40
Q

Why does Indonesia have an ageing population?

A
  • success in nutrition, health, housing, family planning and sanitation
  • decline in birth
  • increase life expectancy
41
Q

What issues does an ageing population pose?

A
  • increasing number of people who suffer from degenerative disease (can effect quality of life and so increase cost of health care)
  • less of the working age to support the country
42
Q

What positive impacts does an ageing population have?

A
  • can obtains longevity benefits as older people have accumulated wisdom, skills and experience
  • can therefore contribute to society for longer
43
Q

What is ASEAN?

A

Association of South East Asian nations

-promote cooperation, trade and movement of people

44
Q

What’s is APEC?

A

Asia-Pacific economic cooperation

  • started in 1989 to stop worries about the highly developed Japan coming to dominate economic activity in the area
  • in 2015, Indonesia president skipped meeting and it began to raise questions about Indonesia’s commitment to multilateralism
45
Q

What is G20?

A
  • in 2008, Indonesia joined G20 a
  • an international group of the 20 major economies around the world
  • aims to ensure global financial stability
46
Q

what is Indonesia’s relation with the EU?

A
  • idea that there is EU-Indonesia free trade agreements

- the bilateral trade between the two is worth €23.5 billion and has potential to grow

47
Q

What is Indonesia’s relations with the USA?

A
  • generally strong as the USA recognises Indonesia’s natural resources and strategic geographical location.
  • 2010 the US-Indonesia comprehensive partnership was launched and aimed to develop relations
48
Q

Why is Indonesia’s in a key international despite with China?

A

Over the South China Sea

  • both want to make use of the resources within the sea such as fishing and energy
  • indonesia wants to take control of Natura islands
  • could lead to future conflict
49
Q

What is Indonesia’s international dispute about climate change?

A

Indonesia wants to develop further

  • physical impacts on the environment that lead to climate change
  • primarily impacts Indonesia’s poorest (e.g. landslides and poor crop yields)
  • UN working to try and reduce this
50
Q

What is interweaving about Indonesia having the world’s largest Muslim population?

A

-people will increasing look to Indonesia to understand how democracy and islam can work together

51
Q

What are some positives about palm oil in Indonesia?

A
  • increasing amount of money made in exports and imports
  • increase in manufacturing goods
  • increase in tertiary and secondary sector
  • government has more money for social spending and on environmental issues -positive feedback loop
  • more tourism
52
Q

What are some negatives about palm oil in Indonesia?

A
  • exploiting Indonesia’s environment
  • loss of animal habitats - extinction and les biodiversity
  • child labour
  • often causes air pollution leading to global warming
  • governments don’t protect environments as economic growth is seen as more important
53
Q

How much of of the global tin supply does Indonesia supply?

A

1/3

54
Q

Where is Bangka island located?

A
  • part of the archipelago of Indonesia
  • within the java sea
  • an island in western Indonesia
  • north of the capital Jakarta, south of Singapore and east of Sumatra
55
Q

What natural and environmental geography does Bangka have?

A
  • plentiful tropical rainforest
  • tropical blue waters,beaches and marine habitats
  • constant temperature of just below 30° all year round
  • rainfall all year round (distinctly drier season of June-September)
56
Q

What are some economic and social effects of tin mining?

A
  • Increases the wealth of local people
  • Tin mining jobs provide 3x the income of agriculture
  • provides 1/3 of global tin
57
Q

What are some environmental effects of tin mining?

A
  • happens illegally in the protected areas of Bangka
  • coral reef death (less tourism and less biodiversity)
  • landslides from mining leads to floods - can kill people
  • species reduced
  • lowering PH of water as too much sediment is entering the water