2. HRM in Indonesia
2.1. Business context
Indonesia is a country with enormous diversity and general HRM challenges. The Asian
economic crisis has had a profound political and economic impact on Indonesia. The business
sector, most notably the large conglomerates and state enterprises, shared some of the blame
for the crisis. Their excesses, in particular large unhedged foreign loans that could not be paid
back as the rupiah, the Indonesian currency, plunged as international confidence in the country
evaporated, has led to the near bankruptcy of the sector (Habir, 1999). The period since the
2. HRM in Indonesia2.1. Business contextIndonesia is a country with enormous diversity and general HRM challenges. The Asianeconomic crisis has had a profound political and economic impact on Indonesia. The businesssector, most notably the large conglomerates and state enterprises, shared some of the blamefor the crisis. Their excesses, in particular large unhedged foreign loans that could not be paidback as the rupiah, the Indonesian currency, plunged as international confidence in the countryevaporated, has led to the near bankruptcy of the sector (Habir, 1999). The period since the
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