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.
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.
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.
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.
