The research purpose of this thesis is to describe how the social unrest of May 1998 in Indonesia has influenced the way foreign companies established in Indonesia monitor developments in the local market to cope with macro political risk issues. The research questions concern how the companies obtain information about macro political risk, how they analyse and assess this.
Literature related to the research questions is reviewed and a frame of reference is developed.
Empirical data is obtained from seven Swedish companies established in Indonesia through personal interviews. The conclusion of our study is that the companies are not very concerned with macro political risk issues and that they have not drastically changed the way they handle it.