INTEGRITY STATEMENT

In this course exam : INTERNATIONAL BUSINESS

Name : Farid Aprilido

NPM : 1806173393

I honestly state that :

1. I do not accept and/or do not provide assistance to any form from/to other students in
doing exam questions.
2. I do not plagiarize other people’s work and recognize is as my job.
3. I understand that all acts of fraud will be punished according to the academic rules that
apply to the Faculty of Economics and Business, Universitas Indonesia.

Place and Date

31/04/2022

(Farid Aprilido)
QUESTION 1

COMPANY PROFILE :
PT Indofood Sukses Makmur Tbk (INDF) is occupied with the production of noodles and
flour processing. INDF was recorded on July 14, 1994 at Indonesia Stock Exchange. INDF
was laid out on August 14, 1990 under its unique name PT Panganjaya Intikusuma and began
its business activities in 1990. In 1994, PT Panganjaya Intikusuma changed its name to PT
Indofood Sukses Makmur. The extent of INDF exercises includes is assembling of noodles,
flour processing, bundling, the executives administrations, and innovative work. INDF head
workplaces are situated at Jakarta, while its industrial facilities are arranged in different areas
in Java, Sumatera, Kalimantan, Sulawesi islands and Malaysia. Over a time of many years
INDF has been continuously changed to turn into a Total Food Solutions organization with
tasks in all phases of food fabricating from the creation of unrefined components and their
handling through to buyer items in the retailers rack. INDF has a few activity in leading its
exercises incorporate purchaser marked items, bogasari, agribusiness and circulation. For
purchaser marked item is noodles, dairy, food flavors, nibble food varieties, nourishment and
exceptional food. Additionally for agribusiness that is ranch, eatable oils and fats.

ANALYSIS:
Globalization is a social peculiarity that we can't keep away from today. The effect of
globalization is progressively spreading in individuals' carries on with, particularly in way of
life and conduct. The ways of life that are featured today are now mirroring the ways of life
of far off countries instead of showing the realness of the way of life and way of life of the
first Indonesian country. Truth be told, changes in way of life because of globalization are
done by metropolitan networks, yet additionally individuals in rustic regions. The main
impact of globalization based on way of life is in conditions of food and refreshments. Since,
food and drink are essential necessities that people should satisfy first. Today, we are ruined
with the rise of different sorts of items, both food and refreshments from abroad that are
imported or to be sure unfamiliar organizations situated in Indonesia. A few unfamiliar food
sources and beverages are seared chicken, steak, bostik, pizza and burgers and different food
sources. Because of the impact of globalization, individuals like to get things rapidly and as
soon as possible, regardless of whether they need to pick food. The accompanying will
examine the impact of globalization on product of Indomie.
In this period of globalization, rivalry between organizations is getting harder, and an
organization should have its own thoughts and innovativeness, by making numerous new
advancements and new items made as per market interest or purchaser request which over the
long run will change.These organizations should make new items in accordance with the
times, for instance, the food organization PT. Indofood Sukses Makmur Jaya Tbk. which has
a primary brand, to be specific Indomie, alongside the times, Indomie makes numerous new
items, for example, Indomie goreng stew ijo, Indomie singed ribs penyet, Indomie seared
fiery, Indomie bubbled hamburger meatball flavor, Indomie bubbled chicken curry flavor,
Indomie bubbled chicken stock , Indomie overflowed with chicken onion flavor and
numerous others, with the many flavor variations that exist in the Indomie, it just so happens,
PT. Indofood has drawn in numerous shoppers. The marketing technique by PT. Indofood
Sukses Makmur Tbk. which can carry the name of Indomie to outside nations, to be specific,
in 1992, Indomie started to be sent out, Indofood made a Commodity Directorate with the
undertaking of zeroing in on fostering Indomie's products to different nations. Then, at that
point, set the objective country. Around then, the fundamental objective was the country with
the biggest number of Indonesian workers, so Indomie was famous in Hong Kong, Taiwan,
Saudi Arabia and others. Truth be told, in Saudi Arabia,Indomie consumers have entered the
second generation. In addition to TKI, Indomie is likewise brought by Indonesian
understudies abroad, so Indomie is additionally famous in nations, for example, the US and
Australia, nations where Indonesian understudies proceed with their schooling. In total there
are currently around 16 factories spread across various countries in the world (Ministry of
Trade 2018) Judging from the number, the factories that Indofood has established in Africa
are quite a lot, and the plan is to rebuild them in two other countries on the African continent,
namely South Africa and Mozambique. Not too many multinational companies are interested
in investing in Africa and they are also targeting countries whose economic, social and
political conditions are still stable. One of them is Nigeria. This former British colony is one
of the largest countries on the African continent. Nigeria is also known as the 'Giant of
Africa' because of its large population and economy (Holmes, Akanbi, and Biobaku 1985).
With a population of 186 million, Nigeria is the most populous country in Africa and the
seventh most populous country in the world. For the food industry, especially packaged food,
Nigeria is the second largest importer of packaging technology in Africa after South Africa
(175 million euros) with 158 million euros in 2018. However, South Africa's import sector
failed to grow, in contrast to Nigeria which increased by an average of 10.5% per year
between 2015 and 2018 (―Agrofood Nigeria‖ nd) Some packaged products with high
demand are liquor, juices, snack chips, tomato paste, pasta and instant noodles, dairy
products, and confectionery and bakery products. Among these packaged products, instant
noodles are the most popular food. Nigeria has become the world's 12th largest instant noodle
market, with locals consuming 1.76 billion packets of noodles per year. Although there are 16
brands of instant noodle products in Nigeria, the Indomie brand of instant noodles remains
the leader to date (Deb and Giokos 2019). Played a big role in the development of instant
noodles and is still the king in the Nigerian market which makes Indomie have a fairly wide
market in Nigeria. According to Forbes magazine 2016, PT. Indofood CBP is ranked among
the top 20 best companies in Indonesia with total sales of 32 trillion. There is no doubt about
Indofood CBP in the world, where the company's instant noodle product is the eighth best-
selling product worldwide (Indofood 2017). The reason instant noodles become the best
selling product owned by PT. Indofood CBP because seen from 2016 data, the consumption
of instant noodles in Indonesia alone reached 14.8 million packs. In 2015, consumption of
instant noodles was 13.2 million packs. It shows an increase every year and by the end of
2017, the consumption of instant noodles in Indonesia reached 16 million packs. Instant
noodles are so popular in Indonesia that they can be found everywhere. In Indonesia, the
share of domestic sales exceeds 90 percent of production, and the remaining 10 percent is
distributed to the export market (Ministry of Trade 2018).
PT. Indofood CBP still prioritizes production and sales centers in the country of Indonesia.
However, the expansion of PT. Indofood CBP abroad also cannot be said to be slow. It was
recorded that until 2015, Indofood CBP products were still exported to more than 80
countries, and from these export activities generated revenues of USD 100 million or 8
percent of the total sales of Indofood CBP as a whole (CNN Indonesia 2017). However, at
the beginning of 2020 the world experienced a pandemic that affected commodity prices to
be higher, therefore Indofood CBP faced a formidable challenge in maintaining a high net
profit margin. This is influenced by the slow recovery of people's purchasing power along
with rising commodity prices. Not only that, margin pressures came from the addition of debt
after Indofood CBP issued global bonds worth US $ 1.75 billion, consisting of 10-year bonds
worth US $ 1 .15 billion with an interest of 3.398% and 30-year bonds worth US$ 600
million with an interest of 4.745%. The compounded annual growth rate (CAGR) of the
company's revenue in 2017-2022 is estimated to reach 12.4 percent. Thus, this year's revenue
is projected to increase 25.8% to Rp 58.7 trillion and increase 8.6% to Rp 63.8 trillion in
2022. Meanwhile, the CAGR of Indofood CBP's net profit for 2017-2022 is estimated at
14.6% . This year, net profit is expected to increase by 3.7% to Rp 7.5 trillion and in 2022 to
grow 9.9% to Rp 7.5 trillion. Previously, analysts at Trimegah Sekuritas Indonesia,
Heribertus Ariando and Darien Sanusi, believed that Indofood CBP was still strong enough to
continue its growth this year. “Positive sentiment towards ICBP's share price movement
comes from the completion of the acquisition of Pinehill which will also support the growth
of Indofood CBP. The company's average net profit growth reaches 15% in the period 2021-
2023," wrote Heribertus and Darien in their research. On the other hand, the increase in
commodity prices will have an impact on profit margins this year.

SUMMARY :
From the discussion in the previous section, in the case of Indomie products, it can be
understood that globalization, which promotes the expansion of companies to the
international level, has succeeded in shifting values and forming a new lifestyle in society.
increase. Indomie, an instant noodle, is now a staple food alternative to most of the world's
population, including Indonesia. Simple expressions, diverse tastes, and low prices are one
of the reasons for eating instant noodles. In fact, the presence of Indomie around the world is
currently changing some people. It can be said that Indomie has given a new meaning to the
lifestyle of enjoying modern food, and has carried out lifestyle branding that has attracted the
attention of many people all over the world in terms of both price and taste. On the other
hand, Indomie also has challenges and other implications from globalization itself. So the
times are constantly evolving, and of course there are competitors who have many
innovations and ideas that are different from PT. Indofood Sukses Makmur Tbk. However,
the company is inferior when it comes to attracting and attracting consumers, not only being
trusted by the general public, but also introducing innovations and new ideas that can turn
into instant noodles in the form of noodles. Not all this can happen to the company, not only
domestically but also abroad. Pandemic situation affect the beginning of 2020, the world
experienced pandemics that affect raw material prices, so pure CBP was an impressive issue
that maintains high net income margins. Therefore, this year's sales are expected to increase
by 25. 8% to IDR 58. 7 trillion and increase by 8. 6% to IDR 63. 8 trillion in 2022. This
year's net profit is expected to increase 3. 7% to IDR 7. 5 trillion and increase 9. 9% to IDR
7. 5 trillion in 2022. On the other hand, rising commodity prices will affect profit margins
this year. Thus, it can be concluded that in this pandemic era, Indofood can still maintain its
share price with a slight decline compared to other industries and companies due to rising
commodity prices.
QUESTION 2
Based on the above two articles, both Indonesian and others can say
ASEAN countries are blessed with the large amount of foreign direct investment they
have recently received. For example, Indonesia's FDI increased 10.1% year-on-year to
a record high IDR. It was 122.3 trillion (US $ 8.5 billion) in the fourth quarter of 2021.
It decreased by 2.7% in the previous term. Singapore, Vietnam, Malaysia has the same
experience as Indonesia. You will use it FDI upgrades technology and features to
facilitate the transition from low prices A manufacturing model for high-value products
and services. ASEAN success The production center is open to trade Existence of
regional supply chains that place Southeast Asia in an advantageous position A supplier
of raw materials and key components essential for final assembly in China. However
We also need to recognize that these countries should not rely solely on it. FDI coming
to your country. Ultimately, they must be able to accomplish it themselves with the
available foreign direct investment. Now it's coming to improve manufacturing and
other manufacturing. Helps them not rely too much on such investments. as you know,
It is more difficult for ASEAN to manage the uncertainties that affect investment
Environment from three domains, often beyond its control: geopolitics and decoupling,
DE globalization and climate change. Therefore, it is better for them to create their own
Certainty within their country that they can handle it themselves.
QUESTION 3
a. They are 3 options :
• Eurocurrency market
• Global bond market
• Global equity market
b. - Euro currency
• Advantages:
i. the lack of government regulation which is higher interest rates For
Eurocurrency deposits compared with the country of origin (attractive
For investors)
ii. that lower interest rates For Eurocurrency loans compared with the
country of origin (attractive For borrower)
• Disadvantages:
 o depositor bank wearing a regulated system -> low risks, while the
Eurocurrency markets, including unregulated system
o foreign exchange risk
- Global bond market
o advantages:
▪ no intervention of government regulations -> bond can be issued with
lower cost kpd publisher
▪ regulations are less stringent than in most of the domestic market
▪ looker tax status
o Disadvantages:
▪ One of the biggest disadvantages of international bond funds is that the
costs cut into the potential returns from investment
▪ are not going to have much information about how the fund is
performing
▪ Lack of Control

- Global equity market

o Advantages:
▪ Enabled firms to attract capital from international investors
▪ To list their stock on multiple exchanges
▪ To raise fund by issuing equity or debt around the world
o Diasadvantages:
▪ There is no international stock market in the sense that there is an
international currency and bond market. Rather, many countries have
their own domestic stock markets where the company's stock is traded.
▪ Currency conversion is the uncertainty of currency differences
▪ Taxation Funds from foreign stocks can be taxed twice

QUESTION 4
1. McDonalds always adaptive and sensitive in order to gain new market in foreign
country, for example in Indonesia they make taste of ayam gulai, rendang and etc they
know their product lifecycle and always innovate with something new, and also
 they’re always up to date with something new, for example when people of the world
love BTS they create marketing strategy to gain more exposure and engagement.
2. It Is already explained in the previous question, because McDonald always up to date
with something new they can always get the hyped of their marketing and also the
young people is relate with their marketing strategy because of they always make
something new either with their product or their marketing. . Other than that they
always keep their consistency with their menu template, concept, and order
experience with their packaging. Because of their order experience we’re always feel
connected with their brand since we are still a kid then they are furious to take the risk
by release their menu with a traditional aspect of Indonesia and also their cross-selling
or package menu can make us think they are better than ala-carte menu.

References
http://riskalestari23.blogspot.com/2019/01/pengaruh-globalisasi-terhadap.html
http://repository.unissula.ac.id/19780/6/bab%20I.pdf
http://repository.unissula.ac.id/19780/6/bab%20I.pdf
https://investor.id/market-and-corporate/253429/imbas-lonjakan-kasus-covid19-terhadap-
indofood-cbp
http://yolandaviani.blogspot.com/2018/09/opini-tentang-tantangan-dan-dampak.html
http://repository.sb.ipb.ac.id/2037/
https://qsstudy.com/advantages-disadvantages-commercial-banks/
https://koinworks.com/blog/ilmu-bisnis-dari-mcdonald/
https://www.finweb.com/investing/6-disadvantages-of-international-bond-
funds.html#:~:text=One%20of%20the%20biggest%20disadvantages,salaries%20of%20the%
20fund%20managers.