WHEAT INTRUDUCE TO INDONISIA
Introduction
Grains industry plays an important role in Australia which includes wheat, coarse grains, and oilseeds. The wheat market is the largest one of these three. Besides, “Australia is one of the four largest wheat exporters in the world, along with the US, Canada and the EU.” (AWB Limited n.d). It is clear that Australian companies have a good experience at wheat export business, for example, Australia Wheat Board (AWB) Limited Company which is a manufacturing company and it is one of the biggest wheat marketing companies in the world. All Australian bulk wheat exports are managed by it. In recent year, AWB Limited is seeking to expand its operations internationally into Indonesia, because due to climatic problem wheat can hardly grow here, therefore the government needs to import wheat product (Magiera 1981, 48). Although rice is the most important staple food in Indonesia, wheat also been required and it imports have increased dramatically (Magiera 1981, 48). Consequently, the researches about Indonesia are very important for AWB Company’s international operations which include political-legal, economic, and technological environments.
Political environment
Different counties have different policies and it would affect foreign company directly. Lately, Former finance minister Fuad Bawazier (government urged to provide tax incentive 2007) said that tax incentives including, tax holiday and tax amnesty should be provided by the government. These policies does not require investors to pay some of the taxes or pay the low rate taxes in a given time and no need to pay taxes if an investor do not have taxpayer identification numbers in a year. From these preferential polices, if AWB Company as a foreign invest in Indonesia, it can pay less tax for the government and earn more profit. Besides, the government will remit the wheat import duty, a deputy from coordinating minister for economic affairs Bayu Krisnamurthi...