New
New
Year 11
AQA

TNCs in Indonesia

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

New
New
Year 11
AQA

TNCs in Indonesia

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

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Lesson details

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.


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

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.
Teacher tip

Equipment

Licence

This content is © Oak National Academy Limited (2025), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).

Lesson video

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Prior knowledge starter quiz

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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

Assessment exit quiz

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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

Additional material

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