Choose exam board for KS4 Computer Science (GCSE)
Choose exam board for KS4 English
Choose exam board for KS4 French
Choose exam board for KS4 Geography
Choose exam board for KS4 German
Choose exam board for KS4 History
Choose tier for KS4 Maths
Choose exam board for KS4 Music
Choose exam board for KS4 Physical education (GCSE)
Choose exam board for KS4 Religious education (GCSE)
Choose exam board for KS4 Spanish

      Lesson details

      Learning outcome

      I can describe the role of TNCs in Indonesia's development and some of the advantages and disadvantages they bring to the country.

      Key learning points

      1. TNCs have boosted economic growth in Indonesia.
      2. TNCs can bring advantages to Indonesia.
      3. TNCs can bring disadvantages to Indonesia.

      Keywords

      • Transnational corporations - TNCS are large companies that operate in several countries; they often have headquarters in one country and factories or offices in others

      • Foreign direct investment - (FDI) foreign countries and companies invest in businesses or industries in another country, often by setting up or buying local companies

      Common misconception

      TNCs have helped Indonesia to develop its own vehicle manufacturing companies.

      While TNCs have been important in developing vehicle manufacturing in Indonesia, the vehicles they make are not Indonesian brands and the profits from selling them in Indonesia or in export markets go to the TNCs and not to Indonesian companies.

      Teacher tip

      Students could use Google Street View in urban centres in Indonesia to identify makes (brand) of cars on the streets, and see if it is true that Japanese makes dominate. Looking at the availability of Street View on different islands could be a way of introducing core and periphery.

      Licence

      This content is © Oak National Academy Limited (2026), licensed on Open Government Licence version 3.0
      except where otherwise stated. See Oak's terms & conditions
      (Collection 2).

      Lesson video

      Loading...

      Prior knowledge starter quiz

      6 Questions

      Q1.
      What is the capital city of Indonesia?

      Kuala Lumpur
      Correct answer: Jakarta
      Bangkok
      Manila

      Q2.
      What type of country is Indonesia in terms of its physical geography?

      Landlocked
      Correct answer: Archipelago
      Desert
      Mountain range

      Q3.
      Which continent is Indonesia located on?

      Africa
      Europe
      South America
      Correct answer: Asia

      Q4.
      What does ASEAN stand for?

      Association of Southern European Nations
      Correct answer: Association of Southeast Asian Nations
      Alliance for South-East Asian Navigation
      Asian Economic Support and Aid Network

      Q5.
      Which of the following is a tertiary sector job?

      Rice farmer
      Coal miner
      Correct answer: Teacher
      Factory worker

      Q6.
      What is pollution?

      Cleaning rivers
      Cutting down trees
      Correct answer: Releasing harmful substances into the environment
      Building homes

      4 Questions

      Q1.
      What does TNC stand for?

      Trading National Council
      Correct answer: Transnational Corporation
      Transport and Communications
      Technological Network Company

      Q2.
      What is foreign direct investment (FDI)?

      A loan given by the government
      Money sent home by workers abroad
      Correct answer: When companies or countries invest in businesses in another country
      A type of tax

      Q3.
      Which of the following is a common reason TNCs invest in Indonesia?

      High wages
      Poor infrastructure
      Cold climate
      Correct answer: Access to natural resources and cheap labour

      Q4.
      Why is it incorrect to say “TNCs have helped Indonesia to develop its own vehicle manufacturing companies”?

      Because Indonesia doesn’t have any cars
      Because all cars are imported
      Correct answer: Because vehicle production in Indonesia is controlled by foreign companies
      Because TNCs do not exist in Indonesia

      To help you plan your 11 geography lesson on: TNCs in Indonesia, download all teaching resources for free and adapt to suit your pupils' needs...