German company “KHS GmbH” are thinking to transfer their business to Indonesia

The German company “KHS GmbH” are thinking to transfer their business to Indonesia

The German company KHS GmbH is a supplier of filling and packaging systems based in Dortmund, Germany. The company offers filling lines for glass and PET bottles, kegs, and cans for the beverage, food, and non-food industries. KHSis a wholly owned by Salzgitter Klöckner-Werke GmbH, Germany.

While the product is selling well the high production costs inGermany mean that the profit margin is small and the firm’s shareholders have requested that management should investigate ways in which the production costs can be reduced.

Management have been investigating moving production to other countries with lower labour costs. Their initialcountry scanhas identified Indonesia as showing promise as possibilities.  However, as the products are dedicated to the German market and as thelocal business partner expects on-time delivery, significantly increased transportation costs have to be taken into account.

  1. Summarise briefly, Indonesian economy using available resources? Use must Tables and Charts. Use proper figure and table capture. Discuss the Charts and Tables?
  2. Discuss the advantages and disadvantages of establishing a production operation in Indonesia?
  3. What risks would the company (KHS)face?
  4. Discuss the importance of Cultural differences between Indonesia and Germany?


  1. What is the risk for the company due to cultural differences?


Please Note

  • Assignment has to have less than 2000 words including the introduction and conclusion.
  • I have uploaded two samples to you, they are not perfect, but you can get some ideas and references and improve them.


  • Please, use those (Risks of Investing in Indonesia & Indonesia Economy 2016 reports), do not use 2015.


  • RMIT Harvard referencing style.


  • Your report needs to be clearly written, well structured and well presented. You should acknowledge all sources used and provide references where appropriate.  References must be presented in approved standard form (e.g. Harvard) and the reference list presented alphabetically by author.  Please note that the software program Turnitin will be used in assessing your assignment.
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