ortation. This is done by passing various laws.(Byron et al. 2013)
Social Stratification: In nineteen centuries, people was divided into various status system on the basis of races in Java. But in twentieth century, due to the economic changes and upgrading of western education the status pattern largely altered. Now discarding racial distinctions, education created the new status system like class of intellectual and non-intellectuals. These new classes challenged the European superior descents and also threatened the nobility status of Indonesian group. People are also stratified on the basis of religion like Islam, Arab Saudi and Kafir (White man). In previous years the people born in the Indonesia tried to hide their nationality but now have higher rank than Indonesian European and Indonesian Chinese. In present, people of European and Dutch nationality are not able to get good jobs and compete in Indonesia because of loss of status but some totok European and Americans are able to get good job if they not come in the category of labour market. Whether Peasants come in the large majority of Indonesia but actually merchant, intellectual and non-intellectuals come in the higher status system in the Indonesia (Wertheim 1955). JBR (Jakarta Bandung region) has largest urban population that is about 26.5% of the total population and has new infrastructure due to largest investment by domestic and foreign investors in the industry and service sector (Fireman 2009).

Section 3

Business Opportunities in Indonesia: Due to the slowing economic growth and falling government revenues, now Indonesian government is trying to increase the value of foreign investments for enhancing economic growth and making infrastructure modern according to the needs. To encourage investments, the government is planning to extend tax exemptions and holidays for new sections. The government has plans of $450 billion to build the much needed infrastructure for five years up to 2019. The government has opened up opportunities for foreign investments in new six refineries, 15 airports and in 35000Mv electricity capacity (Chilkoti 2015).

As Indonesia has faced 1997 Asian financial crisis but now has become politically stable. Lots of factors available in the Indonesia like strong consumer needs, steady economic growth etc. are now providing many business opportunities in Health, Agriculture, Financial services, Infrastructure and Telecommunication. Australian Prime Minister Tony during his visit to the Indonesia has said that he is looking various opportunities for trade in investments and by 2025 it will be world’s 10 biggest economy. He also said whether lots of opportunities are available but to face the diverse culture of 600 ethnic races is also a challenge for foreign investors (Global Indonesian Voices, 2013).
Foreign investment and company establishment, 2015 defines that to establish a business in Indonesia is not an easy task. If the foreign company does not want to invest in the local entity and establish an independent identity, he first has to select a agent and distributor or open a representative office in the Indonesia. If the business shows the sign of growing, then foreign investor will apply for a company status. The foreign investor will establish the office according to the line of business and the government will open essential licences, the main disadvantage of opening representative office is that they cannot conduct direct sales and issue bill of lading.

Entry Strategies: The foreign countries can take advantage of various business opportunities by adopting various entry mode strategies. Different writers describe different entry mode strategies. According to Cullen and Parboteeah 2011, entry mode strategies are Exporting, Strategic Alliance and Foreign Direct Investments. (Phatak, Bhagat & Kashlak 2009) defines exporting, licencing, countertrade, contract manufacturing, non-equity strategic alliance, equity based joint venture, wholly owned subsidiaries. While (Meyer, Estrin, Bhaumik & Pen 2009) has des