What role should HR play in the development of this IJV? In the negotiations? BAW HR? JEA HR? JBAW HR? Of the HR issues mentioned in the case, what kinds of policies and practices should be developed? What should take precedence? Why? What other HR programs and policies should have been considered? Which of these policies and practices are likely to be areas of concern in the successful merger of these two firms? Bavarian Auto Works in Indonesia (Germany/Indonesia)

Dennis R. Briscoe, PhD, University of San Diego The organizations involved:

Bavarian Auto Werks GMBH (BAW)

Jakarta Electro-Assembly Ltd (JEA)

The IJV: Jakarta-Bavarian Auto Works Ltd (JBAW)

THE SITUATION Indonesia is the fourth most populous country (over 242 million people as of mid-2010) and the most populous Islamic country, with per person annual GDP (Purchasing Power Parity) of about US$4,000 (2009).1 The JEA is located on the outskirts of Jakarta, the capital and largest city, located on the island of Java.