International Webinar 2022 - Business culture, how to step forward - part 11

Indonesian academics from STEKOM University in an international seminar explained about family businesses and private companies. According to him, most companies in Indonesia are managed by a family. This company is passed down from generation to generation. They grow moderately, year after year, with an older brother or eldest son as the leader.


The way of doing business is to follow the previous leader. Even when a son or daughter is appointed as the new head of the company, the decision will still come from the parents or eldest brother. For a better understanding of what a privately owned family business is, here are some tips to look out for:


1) Approaching Family in Business.

The structures themselves are similar, but powers are sometimes dispersed internally, no matter who is assigned to which position. Try to approach the whole family and see who makes the decisions.

Doing business with families is overall similar to working with other types of companies in Indonesia. The key is – you have to win over their owners by showing how partnering or working with you will benefit their business.


2) Business Dinner in Indonesia.

A very good sign if they invite you to dinner. This basically means that they are already curious about the product or service, but they need to know more about you or your company personally.

They will have their own way of judging you over dinner. At this point, profit and quality are not discussed. What they want to know is how they can trust you. They will measure how you handle business relationships and the guarantees you offer.

3) Rescheduling for Family Affairs.

Indonesia is a collective nation, so maintaining relationships or continuing family affairs can be a top priority. Even the decision-making process sometimes takes longer because they consider the impact of their actions on others.

You will find many meetings rescheduled due to frequent time off for family matters. The obligation to support each other lies not only with the immediate family, but also with cousins or more distant relatives.


4) The Power of Gifts.
An effective ice breaker at a business meeting is to bring a souvenir from your country (souvenirs). It will surprise your partner and make them happy.

After the gifts are given, the meeting will usually begin with small talk and laughter that bears sweet fruit for both parties. Bring signature snacks or items suitable for display on their table. They will make sure to show it to their colleagues or family.


5) Express Yourself.

There are a few things to do that will make you look good when you meet an Indonesian partner. By expressing yourself properly, you show respect for the local people and Indonesia's business culture as a whole.

Overall, the less you encounter Indonesians, the better. The same goes for being critical as it may be personal. They try hard not to get into conflict.

Also be careful with your statements as locals believe messages have implied meanings. With this in mind, always do your best to make the message sound as clear as possible. For future reference, have important topics in writing.


This material was delivered by a presenter from Indonesia in an international webinar entitled "UNDERSTANDING CROSS-CULTURAL BUSINESS COMMUNICATION" which was held by STEKOM University in collaboration with Universiti Perlis Malaysia, Singapore University of social science, PTIC and various other parties. The presenter's name from Malaysia is Ida Hindriyani, M.Hum who is a lecturer at STEKOM University.


This international webinar activity is part of the implementation of STEKOM University's commitment to increase various international activities. This was done in order to realize the vision to become an international-class university. Various international activities carried out by STEKOM University continue from year to year. There are international activities that are sustainable and there are also some international activities that are not sustainable. All types of international activities are accommodated and regulated by the International department of STEKOM University.