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Course Name ENTREPRENEURSHIP AND INTERNATIONAL BUSINESS

VENTURING

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Date 3 JAN 2015

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1. TABLE OF CONTENT

2. INTRODUCTION BACKGROUND OF LEGEND FLOUR (M) SDN BHD (LFSB)

3. STRUCTURE OF LFSB

4. RANGE OF PRODUCTS

5. POTENTIAL OF LEGEND FLOUR (M) SDN. BHD

PHILIPPINES

i. MARKETING ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR

PHILIPPINES MARKET.

ii. POLITICAL ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR

PHILIPPINES.

iii. ECONOMIC ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR

PHILIPPINES.

iv. LEGAL ANALYSIS BY LEGEND FLOUR (M) SDN. BHD FOR PHILIPPINES.

v. CULTURE ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR PHILIPPINES.

vi. STRATEGIC ANALYSIS OF LEGEND FLOUR (M) SDN BHD FOR PHILIPPINE.

INDONESIA

i. MARKETING ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR

INDONESIA MARKET.

ii. POLITICAL ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR INDONESIA.

iii. ECONOMIC ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR

INDONESIA.

iv. LEGAL ANALYSIS BY LEGEND FLOUR (M) SDN. BHD FOR INDONESIA.

v. CULTURE ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR INDONESIA.

vi. STRATEGIC ANALYSIS OF LEGEND FLOUR (M) SDN BHD FOR

INDONESIA.

6. CONCLUSION

7. REFFERENCE:

LEGEND FLOUR (M) SDN. BHD. is a company licensed by the Government of Malaysia as a

importer, wholesaler and distributor of high quality unbleached wheat flour for domestic and

international markets.

LEGEND FLOUR (M) SDN. BHD was formed on 4th June 2014 with objective to invest in

one of the steadfast principle is that business can only be successful when it is done for the

benefit of all parties - consumers receive high quality and healthy products, while the company

stands to make reasonable profits.

As a company we strive to be different. We are propelled to conduct business fairly. Business

which must be based on integrity and the ability to keep our commitments to our customers. At

LEGEND FLOUR, quality, consistency and commitment to clients are our priorities and

business culture. We strive to be dynamic and versatile, towards unending commitment for

customer satisfaction.

LEGEND FLOUR (M) SDN. BHD ORGANISATION STRUCTURE

Two of the founding Members of the company are still sitting in the board: They are MR. Adam

Breimo (Chairman), Mr. Nazri Abdullah (CEO), each of them have come with diverse

background and experience for more than 10 years.

POTENTIAL OF LEGEND FLOUR (M) SDN. BHD

OUR BUSINESS – WEIGH MORE THEN 3.5 MILLION TONNES PER ANNUM

The wheat flour industry is characterized by a rapid increase of domestic consumption and is

supported by equally fast growing food processing industries. Wheat flour consumption in

Malaysia alone is more than 3.5 million tonnes per annum, and more than a billion tonnes is

consumed annually within the South East Asia region.

The wheat flour distributed by the company is of superior quality as it is unbleached and

therefore free from chemicals. High with natural nutrition yet our flour is very

competitive in price.

Our flour is imported from Middle East, which among the largest exporter of wheat flour

in the world in 2009, by exporting 600 million tonnes wheat flour yearly

The company’s strong collaboration with flour mill gives our customers the comfort of

having high quality and an uninterrupted supply of products.

Our customers range from retailers and petty traders, which operate sundry and provision shops,

to industrial food producers and bakeries.

The company approaches business holistically by recognizing the close connection of financial

success and the desire to make a positive impact to the health of Malaysians by providing an

alternative source of healthy consumer goods.

Our range of LEGEND FLOUR delivers quality, taste,

availability and affordability, and our variety is the hallmark

that distinguishes and differentiates us in the food industry.

MARKETING ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR PHILIPPINES

MARKET

Marketing is effort to create, develop, and to defend markets that satisfy the need and wants of

individual and business customers. As a wholesaler and distributor LFSB will be able to forecast

on the consumer needs of wheat flour by the people in high income groups and is a food cooked

for celebration and special occasion.

According to en.millermagazine.com in Philippines the demand for pasta increases and more

than half of the sales is done via supermarkets. Retail sales increased 3% in 2011. Total sales

volume in 2011 was 72 thousand tons and spaghetti is the most popular product. Fettuccine and

lasagna are not known by the middle income group. These products are used as a substitute for

rice by high and low income groups in Philippines.

In any kind of businesses trade price is very important especially to a middle income group. It is

seen that pasta sales increase at the second quarter of the year when the celebrations are intense.

The demand of the high and middle income groups for pasta is expected to increase in the next

period. The growth in sales volume is estimated to be 2% annually. The spread of supermarkets

and hypermarkets would also support this increase.

Philippines realized 31,2 million-Dollar pasta been imported in 2011. Malaysia is the number

one pasta supplier of the country with 52% share. Other suppliers are China (15,8%)I United

Arab Emirates (8%), Australia (7,3%) and Italia (5,5%) respectively. Turkey realized 200

thousand-ton pasta export to Philippines in 2011. Besides, the tariff rate for ASEAN countries is

5%, 8% for China and 15% for Turkey.

The report from en.millermagazine.com for 2011 sales of Noodles which is a type of pasta was

increased to 190 thousand tons (Wheat Flour Products Based). Prepared by addition of water,

consumption of noodle is widespread their country. Becoming prominent in the eating habits,

noodle can be consumed at three meals including breakfast.

This situation will increase the flour consumption. Noodle’s 2011 sales reached to 22 billion

dollars in value by increasing 7% compared to the previous year. It is estimated that the sales in

the next period will averagely increase 3% in value and reach 25.2 billion dollars in 2016.

Averagely 5% increase is projected annually on amount basis. Total sales in 2016 is expected to

reach 239 thousand 500 tons.

Majority of the consumers in Philippines prefer white bread as it is sold in sales stores in large

amounts with a reasonable price. White bread sales got the largest share of bread sales with 38%

in 2011. The share of whole wheat bread from the sales is 33% and the thought that high-fibber

foods are beneficial to health increases the demand for this kind of bread. The smallest share in

bread sales belongs to sandwich bread. Its most important reason is that hamburgers and hot dogs

are not consumed much in Philippine cuisine.

Biscuit sales in Philippines increased 6% in 2011 compared to the previous year. Producers tend

to supplement their biscuits with vitamin and other food components in order to solve

malnutrition that is spread among kids. In parallel with the increase in flour and sugar prices,

biscuit prices also increased in 2010. Sandwich biscuit is the kind with the largest increase in

sales with 7% rate in 2010. Total biscuit sales reached to 22,5 million Peso by increasing 6% in

2011 compared to the previous year.

Only 33% of the largest sales volumes been monopoly by Monde Nissin Corp in the Philippines

market. Having a wide distribution network, the company presents its products with reasonable

prices. Producers give importance to the trends of healthy nutrition and diet in product

development and try to develop their distribution channels.

It is considered that the sales volume of the biscuits with additives will increase due to the

malnutrition in the next period. The demands of high income groups for healthy nutrition will

also be met. The sales are expected to increase averagely 2,7% on annual basis in 2011-2016

period. Besides, the prices are expected to decrease due to the demand for more economic

products at that period.

Philippines realized 15,9 million-Dollar biscuit import in 2011. Thailand (52,3%) is the number

one supplier. Singapore (10,7%), Malaysia (10,1%), Indonesia (15,7%) and USA (2,8%) follow

Thailand respectively.

With a population of about 100 million people, the Philippines is the seventh-most populated

country in Asia and the 12th most populated country in the world. An additional 12 million

Filipinos live overseas, comprising one of the world's largest Diasporas.

Multiple ethnicities and cultures are found throughout the islands. In prehistoric times, Negritos

were some of the archipelago's earliest inhabitants. They were followed by successive waves of

Austronesian peoples. Exchanges with Chinese, Malay, Indian, and Islamic states occurred.

As one of the world’s leading rice and corn producers, Philippines is a foreign-dependent

country on wheat. Realizing nearly 10 million tons rice and 7 million tons corn every year; the

country uses the entire production for its domestic consumption. 3 million-ton wheat

consumption on annual basis is imported from countries such as US, Australia and Canada.

There are 12 mills throughout the country with a capacity that can process about 4 million tons

wheat on annual basis. These mills are estimated to run with 50% capacity which points nearly 2

million-ton wheat usage. The rest of the country’s wheat need is imported as flour.

Having an important place in world’s rice and corn production, Philippines is a consumer

country for wheat. Philippines, who cannot realize grain-based agricultural product export, is

among the world’s leading wheat importers. The country cannot produce wheat due to its

climatic features, thus it imports the entire wheat amount that it needs from abroad as wheat or

flour. Philippines make flour import besides wheat. IGC estimates that the flour import realized

by the country in 2010/11 season was around 150 thousand tons.

As a company we strive to be different. We are propelled to conduct business fairly. Business

which must be based on integrity and the ability to keep our commitments to our customers. We

also able to import and export our unbleached wheat flour across to any country without any

boundaries in order to penetrate the Philippines market.

POLITICAL ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR PHILIPPINES

The Philippines has a democratic government in the form of a constitutional republic with a

presidential system. It is governed as a unitary state with the exception of the Autonomous

Region in Muslim Mindanao which is largely free from the national government. There have

been attempts to change the government to a federal, unicameral, or parliamentary government

or since the Ramos administration.

The President functions as both head of state and head of government and are the commander of

chief of the armed forces. The president is elected by popular vote for a single six-year term,

during which he or she appoints and presides over the cabinet. The bicameral Congress is

composed of the Senate, serving as the upper house, with members elected to a six-year term,

and the House of Representatives, serving as the lower house, with members elected to a three-

year term.

The senators are elected at large while the representatives are elected from both legislative

districts and through sectoral representation. The judicial power is vested in the Supreme Court,

composed of a Chief Justice as its presiding officer and fourteen associate justices, all of whom

are appointed by the President from nominations submitted by the Judicial and Bar Council.

Case Study:

Philippines make flour import besides wheat. IGC estimates that the flour import realized by the

country in 2010/11 season was around 150 thousand tons. The country was importing most of the

flour from Turkey. But after Philippine millers complained about this situation, an anti-dumping

investigation was started against Turkish flour. Being the primary exported product of Turkey to

Philippines with 46,2% share in 2012, wheat flour increased 67% in 2012 compared to the

previous year. The anti-dumping investigation against Turkey significantly decreased the flour

export of Turkey to the country.

Philippine millers stated that they have to compete with the imported flour that is presented

below its value due to Turkish exporters. PAFMIL asks the government to apply a tariff in order

to protect the industry against these imports. Also, there news about that Turkish flour is harmful

to health and includes toxic substance.

In this current situations happen in Philippines LFSB will be able to penetrate Philippine market

and will be a most welcome opportunity due to our steadfast principle are, this business can only

be successful when it is done for the benefit of all parties - consumers receive high quality and

healthy products, while the company stands to make reasonable profits and not bonded as

subsidies commodity product import by LEGEND FLOUR (M) SDN. BHD.

Formal Institutions Political of Philippines

Mainstream comparative research on political institutions focuses primarily on formal rules. Yet

in many contexts, informal institutions, ranging from bureaucratic and legislative norms to

clientelism and patrimonialism, shape even more strongly political behavior and outcomes. And

because Philippine politics literature has focused primarily on formal institutions, it risks missing

many of the “real” incentives and constraints that determine the political nature. Indeed, rational-

choice analyses of institutions have been criticized for an excessive attention to formal rules and

insufficient attention to firmly established informal practices and institutions.

ECONOMIC ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR PHILIPPINES

The national economy of the Philippines is the 39th

largest in the world, with an estimated 2013

gross domestic product (nominal) of $272.207 billion. Primary exports include semiconductors

and electronic products, transport equipment, garments, cooper products, petroleum products,

coconuts oil, and fruits.

Major trading partners include the United States, Japan, China, Singapore, South Korea, the

Netherlands, Hong Kong, Germany, Taiwan, and Thailand. Its unit of currency is the (₱ or PHP).

The Philippines is classified as a middle power. A newly industrialized country, the Philippine

economy has been transitioning from one based on agriculture to one based more on services and

manufacturing. Of the country's total labour force of around 40.813 Million, the agricultural

sector employs close to 32% but contributes to only about 14% of GDP. The industrial sector

employs around 14% of the workforce and accounts for 30% of GDP. Meanwhile the 47% of

workers involved in the services sector are responsible for 56% of GDP.

The Philippine economy has grown by about 5 percent a year on average over the last ten years,

significantly higher than in the previous two decades. Yet the number of people living below the

poverty line has actually increased.

Formal Institutions Economic of Philippines

1. The structure of the formal credit sector. Severely constrains its ability to respond

effectively to the requirement of the rural development particularly in meeting of small

farmers and all SME entrepreneur due to the important constraint is lack of information

about borrower characteristics and actions which critically limits the ability of bank to

guarantee repayment.

2. The common response of governments to the perceived inadequate supply of credit in

rural areas has generally been in the form of subsidized credit programs, credit quotas

and targeted loan policies at below-market rates of interest. No doubt these are politically

attractive schemes. Nevertheless, such schemes do not directly address the related

problems of information, incentives, enforcement and collateral. It is hardly surprising

that the benefits of such programs and policies are concentrated on a small number of

borrowers, mainly large farmers and other rural agents who can provide collateral (or at

least inspire bank confidence through their reputation). In addition,

3. Informal financial intermediaries continue to operate vigorously in rural as well as urban

areas. These intermediaries represent a principal source of credit for many borrowers. In

fact, the formal and informal intermediaries cater to distinct groups of borrowers. They

apply different sets of behavioural rules and incentive structures to deal with monitoring

and enforcement problems. For instance, informal loans are frequently tied with other

activities, such as the provision of labour or the sale of output. It is well understood that

such interlink age serves to reduce (or sidestep). Informational asymmetries, or to keep

certain relative prices “undistorted” within a given contract.

LEGAL ANALYSIS BY LEGEND FLOUR (M) SDN. BHD FOR PHILIPPINES

Philippines are one of the country who practices with codified mixed systems in which civil

law is the background law but has its public law heavily influenced by common law but a

command legal practice in Philippines are civil law.

Codification is predominant in countries that adhere to the legal system of civil law. Spain, a

civil law country, introduced the practice of codification in the Philippines, which it had

colonized. Among the codes that Spain enforced in the Philippines were the Spanish Civil Code

and the Penal Code.

The practice of codification was retained during the period of American Rule of the Philippine

Islands, even though the United States was a common law jurisdiction. However, during that

same period, many common law principles found their way into the legal system by way of

legislation and by judicial pronouncements. Judicial precedents of the Philippine Supreme Court

were accepted as binding, a practice more attuned to common law jurisdictions. Eventually, the

Philippine legal system emerged in such a way that while the practice of codification remained

popular, the courts were not barred from invoking principles developed under the common law,

or from employing methods of statutory construction in order to arrive at an interpretation of the

codal provisions that would be binding in itself in Philippine law.

Beginning in the American era, there was an effort to revise the Spanish codes that had remained

in force even after the end of Spanish occupation. A new Revised Penal Code was enacted in

1930, while a new Civil Code took effect in 1950.

CULTURE ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR PHILIPPINES

LFSB analysis will be more particularly on details in food based products which is technically

involved us directly to the distributor, food factory/manufacture/industries, bakeries, especially

the analysis in the eating habit, cuisine and traditions for Philippines peoples and culture.

The Philippines has been heavily influenced by both Asian and Western cultures. The

Philippines was first settled by Melanesians; today, although few in numbers, they preserve a

very traditional way of life and culture. After them, the Austronesians or more specifically,

Malayo-Polynesians, arrived on the islands. Today the Austronesian culture is very evident in the

ethnicity, language, food, dance and almost every aspect of the culture. These Austronesians

engaged in trading with China, India, Japan, the Ryukyu Islands, the Middle East, Borneo, and

other places. As a result, those cultures have also left a mark on Filipino culture.

Philippine cuisine consists of the food, preparation methods and eating customs found in the

Philippines. The style of cooking and the food associated with it have evolved over many

centuries from its Austronesian origins to a mixed cuisine of Malay, Spanish, Chinese, and

American, as well as other Asian and Latin influences adapted to indigenous ingredients and the

local palate.

The sale of single-serve cakes is quite widespread. Generally cakes are a kind of snacks

consumed by kids and grown-ups at school, work in the middle of the day. Even though the

special products in the supermarkets are multi-packed, the products inside the package are

single-serve. It is estimated that bakery products will be a substitute for traditional products to

some extent in time. As the shelf life in the country is longer, developments in favour of

packaged products are expected.

STRATEGIC ANALYSIS OF LEGEND FLOUR (M) SDN BHD FOR PHILIPPINES

The strength

LFSB has a capability of supply the unbleached wheat flour without any supports

guidelines from Malaysia government due to our flour doesn’t involves with any

subsidiary price or bonded.

LFSB has efficient and sufficient team members to deal with importer, distributor

and exporter.

LFSB has the capabilities in Bank instrument such as LC, BG and etc.

Most of the Country already banded the consumer by using the bleached flour

except Malaysia.

LFSB is a company licensed by the Government of Malaysia as a importer,

wholesaler and distributor of high quality unbleached wheat flour for domestic

and international markets

The weakness

It is difficult for LFSB to provide education and awareness to consumers that have been

using bleached flour, contain toxins and will provide long-term side effects in the future.

This is because since the days before independence the user has used the flour that has

been bleached. Users are not sensitive to the content of goods such as flour. In their

minds is the result of wheat flour alone. A number of users also never read the content of

the packets in the market.

Which is contains;

Flour bleaching agent is a food additive added to flour in order to make it appear whiter

(freshly milled flour has a yellowish tint) and to oxidize the surfaces of the flour grains

and help with developing of gluten.

Organic peroxides, namely benzoyl peroxide

Calcium peroxide

Nitrogen dioxide

Chlorine

Chlorine dioxide

Azodicarbonamide

Atmospheric oxygen, used during natural aging of flour

Use of chlorine, bromates, and peroxides is not allowed in the European Union, Singapore,

China and Indonesia.

MARKETING ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR INDONESIA

MARKET

Indonesia are quite fast build up and changes in lifestyle of the people of Indonesia, especially

the urban communities that lead to products that are very practical, fast, hygienic and easy to

obtain increasingly prevalent today as communities’ increasingly crowded activity. This raises its

own business opportunities, including mixes flour (such as cake mix and seasoned flour).

The demand for cake mix and seasoned flour continues to rise each year. Indication of the

growing market of cake mix and seasoned flour looks of the number of companies, brands and

product variants circulating in the domestic market looks increasingly numerous and varied.

With the increasing demand for cake mix and seasoned flour in the country, has attracted many

investors to pursue this business. However limited and the lack of information and support data

up to date one of the obstacles to study of cake mix and seasoned flour business in Indonesia.

The above phenomenon has attracted the interest of Mars Indonesia to conduct research about

the industry and markets of cake mix and seasoned flour in Indonesia. The results of the study in

the form of this book are offered to any interested parties to purchase it.

Population in Indonesia.

Consumer Indonesia's population of 247 million people. Based on data from BPS (processed

MARS), Indonesia's consumer population in 2015 is estimated at 247 million, or up 1.13% from

2014, which amounted to 244 million people. This certainly indicates that the market is huge and

promising.

Data 23 Big Cities in Indonesia

The report also describes the demographic profile, income, production and consumption, health

profile, and some other data on 23 major cities in Indonesia, which belongs to secondary cities

such as Malaga, Purwokerto, Newark, and others.

Contains profiles and fundamental data about consumers Indonesia, among others:

Population in Indonesia

Employment, income and expenditure

Profile of consumers in 23 major cities

Profile use of bank and insurance

Consumption profile consumer goods

Consumption profile media & internet

Health profile

etc.

This research has a resource of 2,600 respondents from seven (7) major cities such as Jakarta,

Bandung, Surabaya, Semarang, Medan, Makassar and Banjarmasin with MOE by 2.0%.

Research conducted during the period April-June 2013.

This research was conducted with research design duo, the exploratory research through desk

research; and descriptive research or quantitative research.

Desk research is conducted to collect data relating to the population such as population,

population pyramid, the profile of homeownership, to health, employment, income, do so. While

quantitative research methods is to know about the profile and behaviour of consumers towards a

product / brand, which includes awareness of the brand, product penetration, a brand owned,

brand to be bought, and so on.

POLITICAL ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR INDONESIA

Indonesian governing democratic multiparty presidential republic. As in other democratic

countries, the political system in Indonesia based on the Trias Politica is the legislative,

executive and judicial branches. Legislative power is held by an organization called the People's

Consultative Assembly (MPR).

MPR never be the highest state body unicameral, but after the 4th amendment to the Assembly is

not the highest body again and also changed the composition of its membership. MPR after the

1945 amendment, which since 2004 was transformed into a bicameral body consisting of 560

members of the House of Representatives (DPR) which is representative of the people through

political parties, coupled with the 132 members of the Regional Representative Council (DPD),

which is representative of the province independent pathway.

Member of Parliament and the Council elected by popular vote and were appointed for a term of

five years. Previously, members of the Assembly are all members of the House of

Representatives plus group representatives and military / police. Assembly is currently chaired

by Zulkifli Hasan. Parliament is currently chaired by Novanto, whereas DPD is currently chaired

by Irma Gusman.

Executive agencies cantered on the president, vice president, and the cabinet. Cabinet in

Indonesia is that the Presidential Cabinet of ministers responsible to the president and do not

represent the political parties in parliament. Nonetheless, the current President of the Joko

Widodo promoted by the Indonesian Democratic Party of Struggle also appoints a number of

leaders of Political Parties to sit in cabinet.

The goal is to maintain the stability of the government in view of the strong position in the

Indonesian legislature. However posts of strategic importance generally filled by a minister

without portfolio party (coming from someone who is considered an expert in the field).

The judicial institution since the reform and the amendment of the 1945 run by the Supreme

Court, the Judicial Commission and the Constitutional Court, including the administration of the

judges. Nevertheless the presence of the Minister of Justice and Human Rights is maintained.

ECONOMIC ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR INDONESIA

Any analysis of Indonesia must be viewed through the lens of its experience during the 1997-98

Asian financial crisis, which inflicted significant damage on the domestic economy. Exchange

rate pressures led to a steep devaluation of the Indonesian rupiah, which stood at 15% of its USD

value in the last 6 months of 1997 (Blalock and Roy, 2007). In 1998, investment declined by

45%, GDP contracted by

The OECD has assessed regulatory policies in 24 member countries, Brazil, China and

the Russian Federation 13%, and poverty rose sharply. Economic hardship led to unrest,

and President Suharto resigned after three decades as President, ending the New Order

regime and paving the way for democracy to take hold.

As part of the transition to democracy, decentralisation was rolled out. This process

resulted in a significant transfer of power from central to provincial and local

governments. While decentralisation is widely viewed as a necessary condition for

keeping the archipelago together during the democratisation process, it has also created

unique challenges. In the trade and investment context, issues have become particularly

manifest as local governments now have the ability to impose investment and trade taxes

that may create internal barriers to trade in the domestic market.

This section assesses various indicators of Indonesia’s economic performance with the

aim of understanding better how government regulations and processes can be made

more efficient and conducive to trade and growth.

Trade has contributed to Indonesia’s impressive growth, but trade and growth remain

Table 1.

Indonesia and Southeast Asia, 2010

Indonesia Southeast Asia

GDP growth (% per year) 6.1 7.9

Inflation (% per year) 5.1 4.0

Unemployment rate (%) 8.4 n/a

Current account balance (share of GDP) 0.9 6.3

In the first half 2011, GDP growth averaged 6.5% due to robust investment, a pick-up in

private consumption and strong export performance (ADB, 2011a). Looking ahead,

short-term projections suggest growth rates of around 6% for 2011 and 2012 (OECD,

2010b). However, Indonesia has yet to fully recover to growth rates pre-Asian financial

crisis, and its 2010 growth rate was a full two percentage points below the ASEAN

average, suggesting that scope remains to further enhance growth. Moreover, growth is

not evenly spread across regions, with Java contributing almost 60% of Indonesia‟s total

growth in 2010 (BPS Statistics).

Indonesia‟s GDP per capita has risen almost five-fold in the past forty years (Figure 1).

Trade has played an important role in this remarkable achievement. In the past 25 years,

trade as a share of GDP increased significantly in Indonesia, in part due to the country‟s

outward-oriented development strategy. And while the deep global trade contraction in

2009 is apparent, more recent data suggest that trade has increased to levels closer to

trend.

LEGAL ANALYSIS BY LEGEND FLOUR (M) SDN. BHD FOR INDONESIA

Law of Indonesia is based on a civil law system, intermixed with customary law and the Roman

Dutch law. Before the Dutch colonization in the sixteenth century, indigenous kingdoms ruled

the archipelago independently with their own custom laws, known as adat. Foreign influences

from India, China and Arabia have not only affected the culture, but also weighed in the

customary adat laws. Aceh in Sumatra, for instances, observes their own shariah law,

while Toraja ethnic group in Sulawesi are still following their animistic customary law.

Dutch presence and subsequent occupation of Indonesia for 350 years has left a legacy of Dutch

colonial law, largely in the Indonesia civil code. Following the independence in 1945, Indonesia

began to form its own modern Indonesian law, not developing it from scratch, but modifying

precepts of existing laws. Dutch legal decisions maintain some authority in Indonesia through

application of the concordance principle. The three components of adat, or customary law;

Dutch-Roman law; and modern Indonesian law co-exist in the current law of Indonesia.

Indonesia legislation comes in different forms. The following official hierarchy of Indonesia

legislation (from top to bottom) is enumerated under Law No. 10 Year 2004 on the Formulation

of Laws and Regulations:

1. 1945 Constitution (Undang-Undang Dasar 1945 or UUD'45)

2. Law (Undang-Undang or UU)and Government Regulation in Lieu of Law (Peraturan

Pemerintah Pengganti Undang-Undang or Perpu)

3. Government Regulation (Peraturan Pemerintah or PP)

4. Presidential Regulation (Peraturan Presiden or Perpres)

5. Regional Regulation (Peraturan Daerah or Perda)

In practice, there are also Presidential Instruction (Instruksi Presiden or Inpres), Ministerial

Decree (Keputusan Menteri or Kepmen) and Circulation Letters (Surat Edaran), which

sometimes conflicts with each other.

Once legislative products are promulgated, the State Gazette of the Republic of Indonesia

(Lembaran Negara Republik Indonesia) is issued from the State Secretariat. Sometimes

Elucidation (Penjelasan) accompanied some legislation in a Supplement of the State Gazette.

1945 Constitution

The 1945 Constitution is the highest legal authority in Indonesia, of which executive, legislative

and judicial branches of government must defer to it. The constitution was written in July and

August 1945, when Indonesia was emerging from Japanese control at the end of World War II. It

was abrogated by the Federal Constitution of 1949 and the Provisional Constitution of 1950, but

restored after the President Sukarno's decree on July 5, 1959. During the 32 years of Suharto's

administration, the constitution had never been amended. Suharto refused to countenance any

changes to the constitution and the People's Consultative Assembly passed a law in 1985

requiring national referendum for the constitution amendments.

After the Suharto's fall in 1998, the People Consultative Assembly amended the constitution four

times in 1999, 2000, 2001 and 2002. Important amendments include the direct presidential

election by the people (third amendment) and the presidential office term from unlimited to only

two (first amendment), the regulation of which had made the possibility for Suharto's

administration held in office for more than five terms. After the last amendment, the People's

Representative Council gained more power to control the executive branch, the Regional

Representatives Council was established, regional government was recognized in a section and

an expanded section about civil rights among other changes. Currently, the constitution consists

of 16 sections and 36 articles.

Undang-Undang

or simply meaning that Laws can only be established by the People's Representative Council or

DPR. The executive branch (the President) can propose bill(Indonesian: Rancangan Undang-

Undang or RUU) to DPR. During the process of establishing a bill into a law, DPR will create a

small task group to discuss the bill with the corresponding ministries. When a joined agreement

has been reached, then the President shall endorse a bill into law. However, even if the President

refuses to endorse a bill that has reached joined agreement, the bill is automatically in thirty days

enacted as law and be promulgated as such. When an agreement cannot be reached to enact a bill

into law, the bill cannot be proposed again during the current term of the legislative members

Problem with the systems

There are still many problems with the legal system in Indonesia. Many laws and regulations

conflict with each other, and because the legal system (including the courts) sometimes does not

operate effectively, it can be difficult to resolve these conflicts. In addition, the overall legal

system is badly under resourced, both in the public sector and the private sector which provides

many services to clients. The Indonesian government and professional lawyers in Indonesia are

well-aware of these problems and are working, over time, to improve the system. The rule of law

in Indonesia is undermined by rife corruption among the nation's judiciary and law enforcers.

CULTURE ANALYSIS OF LEGEND FLOUR (M) SDN. BHD FOR INDONESIA

LFSB analysis will be more particularly on details in food based products which is technically

involved us directly to the distributor, food factory/manufacture/industries, bakeries, especially

the analysis in the eating habit, cuisine and traditions for Indonesian peoples and culture.

Wheat is not a native plant to Indonesia, however through imports and foreign influences most

notably Chinese and Dutch Indonesians began to develop a taste for wheat-based foodstuff,

especially Chinese noodles, Indian roti, and Dutch bread. Other than common steamed rice, the

Chinese in Indonesia also considered noodles, bakpao and cakwe as staples. Yet in Indonesia,

especially in Java and Sumatra, the rice culture was so prevalent that sometimes these wheat-

based dishes, such as noodles are treated as side dishes and are consumed with rice, while others

such as Chinese buns and cakwe are treated as snacks.

The European, especially the Portuguese and the Dutch, introduced bread and various types of

bakery and pastry. These European staples have now become alternatives for a quick breakfast.

The Indonesian wheat consumption reached a new height after the advent of Indonesian instant

noodle industry back in the 1970s.

Since then Indonesia has become one of the world's major producers and consumers of instant

noodles. Today, instant noodles have become a staple in Indonesian households for quick hot

meals. Certain brands such as Indomie have become household names.

Indonesian also been influences by foreign food culture as per below and many more:

Indian influences

Indian influence can be observed in Indonesia as early as the 4th century. Following the spread

of Islam to Indonesia, Muslim Indian as well as Arab influences made their way into Indonesian

cuisine. Examples include Indian martabak and kari (curry) that influenced Sumatran cuisines of

Aceh, Minangkabau, and Malay; in addition to Betawi and coastal Javanese cuisine. Some of

Aceh and Minangkabau dishes such as roti cane, nasi biryani, nasi kebuli, and gulai kambing can

trace its origin to Indian influences.

Chinese influences

Chinese immigration to Indonesia started in the 7th century, and accelerated during Dutch

colonial times, thus creating the fusion of Chinese cuisine with indigenous Indonesian style.

Similar Chinese-native fusion cuisine phenomena are also observable in neighboring Malaysia

and Singapore as peranakan cuisine. Some popular Indonesian dishes trace its origin to Chinese

influences such as; bakmi,bakso, soto mie, soto, bakpau, nasi goreng, mi goreng, tahu

goreng, siomay, pempek, lumpia, nasi tim, cap cai, fu yung hai and swikee. Some of these

Chinese-influenced dishes has been so well-integrated into Indonesian mainstream cuisine that

many Indonesian today might not recognize their Chinese-origin and considered them as their

own.

Dutch influences

The Dutch arrived in Indonesia in the 16th century in search of spices. When the Dutch East

India Company (VOC) went bankrupt in 1800, Indonesiabecame a treasured colony of the

Netherlands. Through colonialism, Europeans introduced bread, cheese,

barbecued steak and pancake. Bread,butter and margarine, sandwiches filled with ham, cheese or

fruit jam, poffertjes, pannekoek and Dutch cheeses are commonly consumed by colonial Dutch

and Indos during the colonial era. Some of native uppercases ningrat (nobles) and educated

native were exposed to European cuisine; This cuisine was held in high esteem as the cuisine of

the upper class of Dutch East Indies society. This led to adoption and fusion of European cuisine

into Indonesian cuisine. Some dishes created during the colonial era were influenced by Dutch

cuisine, including roti bakar (grilled bread), roti buaya, selat solo (solo salad), bistik

jawa (Javanese beef steak), semur (from Dutch smoor), sayur kacang merah (brenebon) and

STRATEGIC ANALYSIS OF LEGEND FLOUR (M) SDN BHD FOR INDONESIA

The strength

LFSB has a capability of supply the unbleached wheat flour without any supports

guidelines from Malaysia government due to our flour doesn’t involves with any

subsidiary price or bonded.

LFSB has efficient and sufficient team members to deal with importer, distributor

and exporter.

LFSB has the capabilities in Bank instrument such as LC, BG and etc.

Most of the Country already banded the consumer by using the bleached flour

except Malaysia.

LFSB is a company licensed by the Government of Malaysia as a importer,

wholesaler and distributor of high quality unbleached wheat flour for domestic

and international markets

The weakness

There are plenty flour mill in Indonesia which is very comfortable with bleached flour.

Away cheaper price of bleached flour.

The consumer awareness of the flour without bleach is very little.

It is difficult for LFSB to provide education and awareness to consumers that have been

using bleached flour, contain toxins and will provide long-term side effects in the future.

This is because since the days before independence the user has used the flour that has

been bleached. Users are not sensitive to the content of goods such as flour. In their

minds is the result of wheat flour alone. A number of users also never read the content of

the packets in the market.

Which is contains;

Flour bleaching agent is a food additive added to flour in order to make it appear whiter

(freshly milled flour has a yellowish tint) and to oxidize the surfaces of the flour grains

and help with developing of gluten.

Organic peroxides, namely benzoyl peroxide

Calcium peroxide

Nitrogen dioxide

Chlorine

Chlorine dioxide

Azodicarbonamide

Atmospheric oxygen, used during natural aging of flour

Use of chlorine, bromates, and peroxides is not allowed in the European Union, Singapore,

China and Indonesia.

CONCLUSIONS

LFSB is a newly incorporated company, though LFSB sets the vision and mission of realizing

and maintaining the right of consumers to get supplies such as flour or unbleached non-toxic

dietary and does not depend on the government subsidy and our price are most affordable with

healthy products.

Although LFSB is a new company in the market, and we believes that someday we do not just

trade but we also provide education and awareness on the dangers of solitary user view to

making lightweight basic ingredient in food which contained poisons and non-halal ingredients’.

LFSB will continue to adapt in domestic and overseas markets and will continue to adapt to

market changes and will continue to provide to the user so that learners can create awareness and

to survive in the market and can replace existing product and thriving in the cartel of industrial

products.

I propose that the product launch marketing unbleached flour in widening for both countries to

further accelerate the general knowledge as well as users do not continue to use bleached flour

products over the years.

Although both countries have very different cultural and dietary habits they are not the same. But

a predictions can be made due to a good products can create a spark for healthy socio-economic

growth in each country with effect of positive margin.

9th

Dec 2014

http://en.millermagazine.com/grain-and-flour-market-in-philippines/

9th

Dec 2014

http://en.wikipedia.org/wiki/Philippines

http://en.millermagazine.com/grain-and-flour-market-in-philippines/

9th

Dec 2014

http://en.wikipedia.org/wiki/Philippines

http://en.millermagazine.com/grain-and-flour-market-in-philippines/

Review of Development Economics 1(1), 34–56, 1997

34

Maria Floro and Debraj Ray

© Blackwell Publishers Ltd 1997

E

© Blackwell Publishers Ltd 1997, 108 Cowley Road, Oxford OX4 1JF, UK and 350 Main

Street, Malden, MA 02148, USA.

9th

Dec 2014

http://en.wikipedia.org/wiki/Civil_law_%28legal_system%29

9th

Dec 2014

http://en.wikipedia.org/wiki/Philippine_cuisine

http://en.millermagazine.com/grain-and-flour-market-in-philippines/

14th

Dec 2014

http://en.wikipedia.org/wiki/Flour_bleaching_agent

14th

Dec 2014

http://www.marsindonesia.com/

http://id.wikipedia.org/wiki/Indonesia#Politik_dan_pemerintahan

http://www.oecd.org/indonesia/chap%204%20-%20market%20openness.pdf

http://en.wikipedia.org/wiki/Law_of_Indonesia

https://www.google.com.my/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-

8#q=flour+mill+in+indonesia