Doing Business with the Indonesian Culture

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By Ludmila (Mila) Rusakova Golovine

If one were looking for an up-and-coming country with which to do business, Indonesia would definitely be on the short list.  Having the 16th largest economy in the world with a yearly growth rate of six percent since 2004, Indonesia is one of the most rapidly developing countries on the planet.  This situation will offer tremendous opportunities to those savvy enough to recognize them.  Nevertheless, in order to be successful, one must be able to interact with Indonesians in a culturally appropriate manner.

Indonesia is one of the most diverse countries in the world. It has 17,000 islands and hundreds of different ethnic groups speaking various languages. Consequently, there is no single Indonesian culture.  That said, the Javanese culture has long dominated the island chain.  In addition, Bahasa Indonesia, a modified form of Malay, has become the official language in an effort to improve communication across the country.  Therefore, one can glean some basic characteristics from the culture.

Just as there are many ethnic groups in Indonesia, there are many religions as well.  Although the country is predominantly Muslim (the most populous Muslim country on Earth), there are still quite a few Buddhists, Hindus, and Christians. Therefore, you must be extra cautious in your behavior so as not to offend.  For example, should you intend to give a small gift to your Indonesian counterpart, you should not give anything derived from alcohol if he/she is a Muslim since alcohol is strictly forbidden in Islam.  Similarly, you should not give anything made of leather to your Indonesian counterpart if he/she is a Hindu as cows are held sacred in Hinduism.  Finally, if your counterpart is Chinese, you should avoid giving knives, scissors, clocks, handkerchiefs, or straw sandals.  It may seem like a lot to avoid but just pay special attention to avoid these items and everything should be fine.

When meeting your Indonesian counterpart for the first time it is customary to exchange business cards.  Please bear in mind that in Indonesia, as in most of Asia, business cards are considered an extension of the person.  Therefore, the card must be carefully accepted and treated with respect.  Accept the card with both hands, attentively read it paying particular attention to the name, and respectfully place the card in a special case.  It is imperative that you do not place the card carelessly in your back pocket as it is considered disrespectful.  When presenting your business card, only use your right hand with your left hand holding your right wrist.  Please be sure to have enough business cards for all of the people you are meeting.  Not presenting a business card will be considered impolite.

When dealing with Indonesians, one must be very careful when hearing the answer “yes” to something.  Quite simply, Indonesians do not wish to offend anyone and very often a negative answer is perceived as an offense. Consequently, many times they will say “yes” when they actually mean “no.”  The Bahasa Indonesia language confirms this cultural characteristic.  There are twelve distinct ways of saying “yes” when expressing “no.”  Therefore, whenever speaking with your Indonesian counterpart, you must pay careful attention to body language to see if he/she is expressing the affirmative or the negative reply. It is important when speaking to never let your voice get loud whether in anger or happiness because Indonesian culture is very soft-spoken.

Physical appearance and interaction is also very important to the Indonesians. Unless otherwise indicated by their company, Indonesian men will wear a coat and tie.  Women will usually wear long-sleeved blouses and skirts that cover their knees.  It is important to research your counterparts beforehand and dress accordingly.  Physical contact should never be made between a man and a woman, which extends to the exclusion of a handshake.  Elders are treated with great respect so no one should ever have their back to an elder as it is very disrespectful.  Much like with business cards, only the right hand should be used to pass objects, eat, or touch things as the left hand is considered unclean.  In addition, hands should never be placed in pockets during a conversation.

Proper meeting etiquette must be followed.  Indonesians are known for being late to meetings so don’t be surprised by this.  Nevertheless, you will be expected to be on time so demonstrate patience and never mention the fact that the meeting began late.  If you are already present when your Indonesian counterparts arrive, always rise to meet them.  It is impolite to remain seated.

While Indonesian culture has not historically been at the forefront of business, it is certainly one of the most active and emerging cultures today.  One would be remiss in not trying to engage in such a promising opportunity especially with such a responsive people.  With a modicum of cultural study and effort, you can be successful conducting business with Indonesians.

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As a graduate of the Wolff Center for Entrepreneurship at the University of Houston, Ludmila (Mila) Rusakova Golovine, Founder, CEO, and President of MasterWord Services, Inc., started her company with a vision of seamlessly connecting people across any language, any time, and any culture.  She understands the complexities of the global marketplace and excels at providing language solutions based on creative thinking and strategic planning.  Mila can be reached by phone at 281-589-0810, by email at [email protected], or visit her website at www.masterword.com.

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