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Doing business with Indonesia ...

13/8/2019

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Indonesia is an emerging Asian giant. It is the largest economy in South East Asia and in recent years Indonesia's GDP has been growing at more than 5% annually on the back of stable democratic government, open trade and investment policies, increasing domestic consumption, abundant natural resources and a growing skilled workforce.

Yet Indonesia remains at an earlier stage of development than some of its neighbours, which in some respects can make it a more challenging place to do business. However, Indonesia's proximity
and emerging global market economy present significant opportunities for Australian enterprise. The key emerging industries include mining, manufacturing, infrastructure, automotive and fast moving consumer goods. www.asialinkbusiness.com.au
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Some pointers for doing business in Indonesia are as follows:
  • Avoid wearing revealing clothing such as sleeveless shirts or shorts.
  • Alcohol is not widely consumed and pork is prohibited for religious reasons. However, Indonesians generally tolerate alcohol consumption.
  • Avoid pointing with an index finger, which is considered rude. Pointing with a thumb is acceptable.
  • Avoid showing the soles of your feet when seated, as this is considered offensive, particularly if the soles face anyone in the room.
  • The exchange of gifts is not widely practiced in business.
  • Always have plenty of business cards, and treat other people's cards with respect when they are handed to you.
  • Ensure that your message has been fully understood, as Indonesians will not always indicate when they unsure about something.
  • Long-sleeved batik shirts are regarded as formal wear (equivalent to a dark business suit in Australia). Trousers, shirts and ties are common business attire.
  • Be aware of jam karet (rubber time). This is an indication that meetings may not necessarily start on time.
  • When presented with tea or coffee, always wait for your host or hostess to drink first. It is also considered polite to at least sample the food or drink offered.
  • Address each person using their title and first name, e.g. Mr Andy or Miss Lia.
  • RSVP requests are often not answered, but this does not mean someone will not turn up to a meeting.
  • Never give or offer your business card (or any items) with your left hand.
  • Do not attempt to force a decision. To attempt to do so will often have an adverse effect on negotiations.
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Language gives the upper hand when doing business with Indonesia..

6/8/2019

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Indonesia is a growing market and is the largest economy in South East Asia, the country is the 16th largest economy in the world and by 2030, economists believe it will be the 7th largest or bigger still. Steady growth in the current uncertain economic times is a rarity, and Indonesia seems to just shrug things off.
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Doing business in Indonesia is not without its challenges. Corruption and a lack of transparency count against the country, but overall, Indonesia is a great place to do business.  The country is very tech savvy and has a good understanding of world markets as well as domestic trade. Logistics in the country are a challenge as the infrastructure the country needs to sustain its growth and a growing population is somewhat underdeveloped.  These obstacles to doing business can be overcome, however, to really get to grips and work with what is available being able to converse in Indonesian does give any business person an upper hand. Often, some simple negotiation in a native language yields results, and with Indonesia it is no different to anywhere else in the world. Politeness and a little tolerance, combined with some mutual respect by speaking Indonesian, go a long way.

Business in Indonesia is not rushed and is very different to the way in which business is conducted in western countries.  Culture and respect both play an important part of business proceedings and the fact that things take their time, is very much out of respect for those who are being dealt with.  Relaxed is perhaps the best word that could define any business meeting in Indonesia, with a great deal of time spent learning to understand the person one is doing business with.  The interpersonal part of doing business in Indonesia is key, and because of its importance, being able to converse in the language speaks volumes about one's intent and respect, elevating a foreigner several steps very quickly in the negotiations.
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In Indonesian business, “yes” is not always “yes”. The people of Indonesia are very indirect in their communication and what may actually be thought of as yes or “it’s a deal”  may be easily lost in translation. Slowing things down and not pushing for deadlines is the key to business success in Indonesia, and whilst some things must have a deadline, do not push it, it may very well be met but by becoming pushy will almost ensure it will not. Having some command of the Indonesian language does mean you stand a better chance of actually knowing if the yes means yes, it does allow you to have a little more control over the business process, and does ensure you don’t get lost in the conversation around the table.

Indonesia is a terrific place to do business, and if it is well researched, and a plan is made to ensure most eventualities are covered, it can be very successful. However, no strategy is ever going to play out 100% as planned but having the language under control does increase the odds of greater success. 


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