What you should know before doing business in Indonesia

Organization of the social system
Indonesia is a very diverse nation, both geographically and ethnically, and people tend to identify themselves first on a local basis and only later on a national basis. There are cultural differences deriving from the economic level of the families of origin. The diversity of the religions practiced also implies a great effort by the government to maintain the cohesion of the country: the motto of Indonesia is “unity in diversity”.

Indonesians attach great importance to the family and therefore prefer the group to the individual. Respect for status, power, position and age is a basic foundation for any kind of relationship.

Punctuality and time management
Time in Indonesia is experienced in a very relaxed and flexible way. Indonesians do not resort to business negotiations and often do not take the time to design everything in detail. Indonesian attitude towards time is a reflection of the expression: “time is not money”.

Women managers who go on a business trip to Indonesia should hold a very professional attitude with male colleagues, avoiding obvious signs of friendship that could be misunderstood.

Business cards are formally exchanged during the initial phase of the meeting; they must contain your title and, although not necessarily, have a side translated into Bahasa or Chinese, based on the interlocutor: this is a sign of respect. Business cards are donated and received with both hands, with the right hand holding the card and with the left hand supporting the wrist, and examined before putting them away.

In the cities, being now very westernized, Indonesian life follows the rhythms familiar to us: the working week goes from Monday to Friday, with the classic office hours and the shops remain open 7 days a week, often with extended hours. 

So how to do business in Indonesia in perspective of personal and professional relationship?

The role of women
Indonesia is a predominantly Muslim country, yet many women occupy positions of power within organizations and female visitors are unlikely to encounter any hostility from male counterparts.

Women with blond hair and blue eyes attract more attention in Indonesia, characteristics not very common in the local population, very clear skin is considered very attractive. Women entrepreneurs have the opportunity to make invitations for dinner, but remember that it is advisable to invite the wife of your interlocutor to avoid embarrassment.

Keep in mind, in working relationships, that family ceremonies are a priority: your interlocutor might be absent because his extended family has been in mourning and he has an absolute obligation to attend.

Feelings and emotions should be made to leak very little and in a discreet way, the people with whom you are conversing must never be put in embarrassing situations; it is also good to avoid ridiculing, offending or shouting with someone.

If you want to give a gift to an Indonesian you should pay attention to some details: never give scissors or knives because it is usually associated with the end of a relationship; also avoid products or photographs of dogs, are considered impure. If your interlocutor is of original Muslim, avoid giving away alcohol, for Hindus it is better to avoid giving leather goods and for those of Chinese origin it is better to avoid umbrellas (means that you do not want to see a person again).

Common places and stereotypes
Indonesia is often described as a poor country, but this is commonplace. The government has tried to focus first on democracy and this has also given impetus to the economy. Today Indonesia is seen as an emerging and very attractive market for Italian companies to Indonesia, especially in the mechanical, energy, environmental, automotive and luxury goods sectors.

The work/ free time relationship
Indonesia is the largest Muslim nation in the world and celebrates Ramadan and other Islamic festivals with great participation. In Bali, where the majority follows a religion of fusion between Hinduism and Buddhism, it is necessary to extricate themselves from Muslim festivals (now many immigrants live on the island from Java and in any case public offices follow the Muslim calendar) and local festivals. These are repeated twice a year, as the Balinese calendar lasts six months.

Many Indonesians can make a slight bow or put their hands on the heart after shaking hands to give more meaning to the greeting. Muslim and Hindu men and women, for religious reasons, do not touch in public and women should not be greeted with a handshake by a man, but the gesture is reciprocated if the initiative is female.

Gaffe to avoid
While eating is forbidden to speak, the conversation is reserved for the before and after the meal. Remember not to use your left hand at the table because it is considered unclean. It would also be better to avoid staring at a person for a long time, because it is considered a challenge.

Method of communication and relationship
The hierarchy is very important for Indonesians, bringing respect to people who occupy important roles or who are more senior than their own is a fundamental and very welcome gesture.

The Indonesian businessman is usually an educated man, superior to his employees, who owe him respect; all this does not imply an attitude of arrogance. In companies of purely Indonesian culture the head (baba) must be respected both from the formal and the substantive point of view. Respect is shown visibly by avoiding that your head is higher than its own, if you are tall, you should give it a small nod if you have to pass in front of it or keep a posture slightly inclined to mean respect.

During the 1990s, Indonesia developed a development strategy that enabled the economy to be relaunched and significant progress made in all major sectors. The results obtained were encouraging, especially in terms of economic growth: all forecasts see Indonesia among the top six world powers by 2030. If you are from Italy and want to expand your business to Indonesia, you should at least read this website.

The profile of the businessman
Defining the profile of the Indonesian businessman is not very easy. The Indonesian people are a mix of ethnic groups and this makes it almost impossible to outline a standard identikit for this profession.

Indonesian Government supports the development of geothermal power plants

If you are looking for Indonesian Market research for energy and power development, you can read this.

Local companies and foreign investors from the USA, Italy, Japan, South Korea, Turkey and China expressed an interest in projects that shed a total aggregate capacity of 255 megawatts.

The Ministry of Energy and Mineral Resources Indonesia considers this auction to be quite attractive for both parties, but the results will need to wait for the end of the year 2017, or the beginning of the year 2018.

In recent months, the Indonesian government has implemented an auction of six geothermal projects worth $1.02 billion to expand the capacity of Indonesia’s renewable resources as part of its plan to become the world’s largest geothermal energy producer.

The geothermal projects offered are in the following locations: Kapahiang in Bengkulu with a capacity of 110 MW, Simbolon Samosir to North Sumatra with 110 MW, Borapulu in central Sulawesi with 10 MW, Lamiding on the northern Maluku with 10 MW and Oka Ile Ange in Mount Sirung on the eastern Nusa Tenggara with a capacity of 10 MW and 5 MW.

” The amount of investment in each geothermal region varies depending on region and local conditions. On average, however, the investment in geothermal development is about $4 million to 1 megawatt, “said Yunus Saefulhak, director of the Geothermal Resources of the Ministry of Energy and Minerals.

Indonesia as a geothermal power

Indonesia ranks among the world’s geothermal powers. It is currently the third largest global geothermal producer behind the first U.S. and second in the Order of the Philippines. The government plans to push Indonesia to the first place in the rankings by 2021 and ahead the US and the Philippines.

According to estimates, Indonesia now has a potential geothermal capacity of approximately 28.000 MW, which can account for up to 40% of the world’s total resources. Indonesia currently uses only about 6% of its geothermal potential and therefore the Government is very active in supporting and promoting geothermal power projects.

The geothermal capacity of the current largest US producer will likely stagnate at 3.450 MW and no further development in this area is planned. The Philippines, currently the second largest geothermal producer, has already fully exploited its potential and can even record the decline in capacity from the current 1.870 MW.

This year Indonesia will add additional 215MW capacities of geothermal power plant Sarulla to northern Sumatra, 30MW from power plant Karaha in western Java, 20MW from Sorik Marapi North Sumatra and 55MW from Ulubelu 4 in Lampung.

Indonesia expects to have a geothermal capacity of 3.559 MW in the next four years. According to estimates, Indonesia now has a potential geothermal capacity of approximately 28.000 MW, which can account for up to 40% of the world’s total resources. Indonesia currently uses only about 6% of its geothermal potential and therefore the Government is very active in supporting and promoting geothermal power projects.

If you are company in Europe specializing in energy production and would like doing business in Indonesia, Indonesian government is providing great incentives and tariffs that can ease your business expansion to Indonesia and South East Asia. 

This is how you make good business opportunity in Indonesia

Indonesia is one of the fastest growing economies in Asia, so a business trip to the country becomes more and more interesting. Looking forward to a business opportunity in Indonesia? So how should you doing business in Indonesia once you are there for a market study?

On paper, a Dutch entrepreneur in Indonesia should have the advantage. Look at the age-old trade relations, which partly still exist and where you may be able to hook up.

1. Show extra great awe

Andrew Senduk: “Respect is extremely important within Indonesian culture. Never speak business contacts in an amicable, jovial way. It is good to give a business card with two hands and thereby make a slight bend.

2. Do not be impatient

Senduk: “Patience is essential for doing business in Indonesia. The fact that Indonesian entrepreneurs often come too late to appointments or that communication is slow does not mean that they are not interested. It’s in the culture. “

” On the day that I would have my first meeting with the entire Printerous team in Indonesia, I worried unnecessarily if I would be on time. I had arrived in Jakarta in the morning, had a good jet lag and it rained as it can only rain in Indonesia … hard. Soaked I arrived at half past one, with the expectation that everyone would look at me with a look of ‘you’re late’.

3. Profiling yourself as a ‘social animal’

Senduk: “This sounds like an open door, but Indonesia is a very social country. This is also reflected in the use of social media, because Indonesia is one of the top 3 social media users in the world. Always and always friendly, because you never know who can put you in contact with an essential business relation.

” You also recognize the social character of Indonesians at the meeting place for a business meeting. When you are a guest at a meeting, chances are that it takes place in a restaurant in a shopping mall. In shopping malls, the social life of residents mainly takes place.

4. ‘Read between the lines’

Senduk: “Indonesians do not have directness like most western people have. This means that people in daily communication often turn around.

On paper, a Dutch entrepreneur in Indonesia should have the advantage. Senduk: “Patience is essential for doing business in Indonesia.” On the day that I would have my first meeting with the entire Printerous team in Indonesia, I worried unnecessarily if I would be on time. I had arrived in Jakarta in the morning, had a good jet lag and it rained as it can only rain in Indonesia … hard. Senduk: “This sounds like an open door, but Indonesia is a very social country.

Senduk was a consultant and option trader at ING and Deloitte and is now the co-owner of the European branch of Printerous, an Indonesian Internet service that prints social media images on albums, canvas boxes, magnets and stickers. He explains how you can best behave in Indonesia.

With its paced economy and population size, it is a very attractive expand your market with huge business opportunity in Indonesia.




Article is adopted from https://www.sprout.nl/artikel/marketing/zo-maak-je-goede-sier-indonesië

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