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
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
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.
