Located at the crossroads of the Indian and Pacific Oceans, Indonesia is a cultural and ethnic melting pot whose society is as fascinating as its history. Indonesia is the world’s fourth most populous nation and the largest Islamic nation.
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Indonesia Today
This immense archipelago is characterised by a unique mixture of distinct ethnic, linguistic and religious groups that have contributed to Indonesia’s rich and diverse culture. The people of Indonesia share fundamental beliefs that contribute to daily life and business practices. In order to achieve success in this market, it is vital to understand and have an appreciation of the cultural nuances that define Indonesia.
Indonesian Culture – Key Concepts and Values
Communication Style – Indonesians tend to communicate in a subdued and indirect manner. They do not always say exactly what they mean. Indonesians speak in a subtle tone and therefore it is up to the listener to pick up on communication subtleties by paying attention to body language and gestures. Indonesians are polite and diplomatic in their speech and will make great efforts not to offend others. They will do anything to save face even if it means avoiding confrontation or telling others what they want to hear rather than dealing with immediate issues.
Time – Time in Indonesia is approached in a very relaxed and flexible manner. Indonesians do not rush through business negotiations and often do not take the time to plan everything in great detail. Punctuality is not always observed as Indonesians do not like to feel hurried and do not share the western sense of urgency. The Indonesian attitude towards time is reflected in that time is not money. They may show less interest in profit or material success but prefer to build relationships.
Collectivism – Indonesia is a collectivist society that places higher importance on the group than the individual. Your Indonesian counterparts will always place family and community concerns over that of the business or individuals.
Religion – Indonesia currently is the world’s largest Islamic nation. Muslims pray five times a day and in some workplaces in Indonesia there are separate rooms for daily prayers. There are varying degrees to which Islam influences Indonesian business culture but it is essential to remember its influence when working with Indonesian counterparts. Ramadan is a major Islamic tradition that includes fasting for an entire month. Although foreigners are not required to fast, it is considered impolite to eat or drink in front of others during this time.
Doing Business in Indonesia
After gaining its independence from the Netherlands in the mid-twentieth century, Indonesia shifted from a democracy to an authoritarian government. Economic strife and political instability coupled with corruption, terrorism and civil unrest have resulted in slow progress in the latter part of the twentieth century. At the beginning of the 2000s, the government implemented significant reforms in the financial sector which led to major economic advances and today Indonesia is South East Asia’s biggest economy.
It is one of the world’s most populous nations with an untapped potential for growth in the economic sector. Petroleum, natural gas and textiles account for the majority of industry in Indonesia with services accounting for the majority of its gross domestic product. Having an awareness of Indonesian business etiquette is essential for those wishing to succeed in new business ventures in Indonesia.
Indonesian Business Part 1 - Working in Indonesia: Working practices in Indonesia
Structure and hierarchy in Indonesian companies
Working relationships in Indonesia
Indonesian Business Part 2 - Doing Business in Indonesia: Business practices
Business Etiquette (Do’s and Don’ts)
DO have your business cards printed in English. If you know you are working with Chinese Indonesians, it is polite to have the reverse side printed in Chinese. If you are working with ethnic Indonesians, have the reverse side translated into Bahasa Indonesian.
DO have all academic qualifications and titles printed on the card. When handing your card, offer it using the right hand or both hands.
DO arrive on time to meetings, but as a general rule, do not expect your Indonesian counterparts to do so. For Indonesians, time management is not a priority and little effort is put into planning ahead.
DO address your Indonesian business colleagues with the appropriate professional title. When introducing yourself or handing a business card, include your title as people with more qualifications are held in higher regard.
DON’T forget to take into consideration that Muslims pray five times a day when scheduling business meetings with your Indonesian counterparts. Prayers usually last fifteen minutes and time should be allocated for them.
DON’T be afraid to recap what you have discussed in your meeting. It may be necessary to explain yourself in a different way. Indonesians will never indicate if they do not understand something so it is wise to summarise in order avoid any misunderstandings.
DON’T offer alcohol, leather, certain animal products or knives as gifts to your Indonesian counterparts.
Indonesia Culture Quiz – True or False
1. Indonesians tend to use hand gestures and assertive language when communicating.
2. It is acceptable to use either hand when taking or receiving an object.
3. Decisions will be made by the person in the company of the highest rank.
4. Indonesians tend to place the group before the individual.
5. Indonesians believe that success is measured by relationships they build and not by profit or material success.
Indonesia Culture Quiz – Answers
1. False. Indonesians are very subdued in their communication styles and tend to speak with passive and hushed voices.
2. False. Using the left hand is considered bad manners and should only be used concurrently with the right hand.
3. False. While the highest level manager will be involved in decision making, Indonesians prefer to reach a consensus.
4. True.
5. True.
Indonesia Today
This immense archipelago is characterised by a unique mixture of distinct ethnic, linguistic and religious groups that have contributed to Indonesia’s rich and diverse culture. The people of Indonesia share fundamental beliefs that contribute to daily life and business practices. In order to achieve success in this market, it is vital to understand and have an appreciation of the cultural nuances that define Indonesia.
Indonesian Culture – Key Concepts and Values
Communication Style – Indonesians tend to communicate in a subdued and indirect manner. They do not always say exactly what they mean. Indonesians speak in a subtle tone and therefore it is up to the listener to pick up on communication subtleties by paying attention to body language and gestures. Indonesians are polite and diplomatic in their speech and will make great efforts not to offend others. They will do anything to save face even if it means avoiding confrontation or telling others what they want to hear rather than dealing with immediate issues.
Time – Time in Indonesia is approached in a very relaxed and flexible manner. Indonesians do not rush through business negotiations and often do not take the time to plan everything in great detail. Punctuality is not always observed as Indonesians do not like to feel hurried and do not share the western sense of urgency. The Indonesian attitude towards time is reflected in that time is not money. They may show less interest in profit or material success but prefer to build relationships.
Collectivism – Indonesia is a collectivist society that places higher importance on the group than the individual. Your Indonesian counterparts will always place family and community concerns over that of the business or individuals.
Religion – Indonesia currently is the world’s largest Islamic nation. Muslims pray five times a day and in some workplaces in Indonesia there are separate rooms for daily prayers. There are varying degrees to which Islam influences Indonesian business culture but it is essential to remember its influence when working with Indonesian counterparts. Ramadan is a major Islamic tradition that includes fasting for an entire month. Although foreigners are not required to fast, it is considered impolite to eat or drink in front of others during this time.
Doing Business in Indonesia
After gaining its independence from the Netherlands in the mid-twentieth century, Indonesia shifted from a democracy to an authoritarian government. Economic strife and political instability coupled with corruption, terrorism and civil unrest have resulted in slow progress in the latter part of the twentieth century. At the beginning of the 2000s, the government implemented significant reforms in the financial sector which led to major economic advances and today Indonesia is South East Asia’s biggest economy.
It is one of the world’s most populous nations with an untapped potential for growth in the economic sector. Petroleum, natural gas and textiles account for the majority of industry in Indonesia with services accounting for the majority of its gross domestic product. Having an awareness of Indonesian business etiquette is essential for those wishing to succeed in new business ventures in Indonesia.
Indonesian Business Part 1 - Working in Indonesia: Working practices in Indonesia
Structure and hierarchy in Indonesian companies
Working relationships in Indonesia
Indonesian Business Part 2 - Doing Business in Indonesia: Business practices
Business Etiquette (Do’s and Don’ts)
DO have your business cards printed in English. If you know you are working with Chinese Indonesians, it is polite to have the reverse side printed in Chinese. If you are working with ethnic Indonesians, have the reverse side translated into Bahasa Indonesian.
DO have all academic qualifications and titles printed on the card. When handing your card, offer it using the right hand or both hands.
DO arrive on time to meetings, but as a general rule, do not expect your Indonesian counterparts to do so. For Indonesians, time management is not a priority and little effort is put into planning ahead.
DO address your Indonesian business colleagues with the appropriate professional title. When introducing yourself or handing a business card, include your title as people with more qualifications are held in higher regard.
DON’T forget to take into consideration that Muslims pray five times a day when scheduling business meetings with your Indonesian counterparts. Prayers usually last fifteen minutes and time should be allocated for them.
DON’T be afraid to recap what you have discussed in your meeting. It may be necessary to explain yourself in a different way. Indonesians will never indicate if they do not understand something so it is wise to summarise in order avoid any misunderstandings.
DON’T offer alcohol, leather, certain animal products or knives as gifts to your Indonesian counterparts.
Indonesia Culture Quiz – True or False
1. Indonesians tend to use hand gestures and assertive language when communicating.
2. It is acceptable to use either hand when taking or receiving an object.
3. Decisions will be made by the person in the company of the highest rank.
4. Indonesians tend to place the group before the individual.
5. Indonesians believe that success is measured by relationships they build and not by profit or material success.
Indonesia Culture Quiz – Answers
1. False. Indonesians are very subdued in their communication styles and tend to speak with passive and hushed voices.
2. False. Using the left hand is considered bad manners and should only be used concurrently with the right hand.
3. False. While the highest level manager will be involved in decision making, Indonesians prefer to reach a consensus.
4. True.
5. True.
