International Webinar 2022 - Business culture, how to step forward - part 10

Indonesian academics from STEKOM University in an international seminar explained that power and hierarchy influence Indonesian business culture. The hierarchical principle here is similar to some other Asian countries. Indonesia still has a high power distance value. People are not equal in society and this is also reflected in organizations. In other words, employees with less power in life expect and accept to have less power in the workplace as well.


The concept of hierarchy is still common, especially in older generations and established companies. Introduced to new people, try to say who is the oldest or most senior first. Titles are something to be proud of and show your status in society. It is polite to address them by the title Mr/Ms (Mr/Ms) rather than direct name recognition.


The phrase "Yes, Boss" in Indonesian business culture has also become an influential culture in business in Indonesia. This expression does mean “Yes”, but mostly to make someone happy, show respect and fulfill someone else's request. However, don't be fooled into thinking that it automatically confirms what is being discussed between partners.


Often foreign companies get the wrong idea, thinking that a deal has been concluded. When in fact the Indonesian couple just wants to please the other party. Once the foreign company returned home, they found that nothing had happened.


So a one time "yes" doesn't mean Indonesians will do what is said or have to agree with it. Be sure to double-check your proposal several times.


Although following through on new connections is not a priority, Indonesians feel committed to the relationship and maintain good relations. Saying "no" is not an easy word to pass on the lips of local people. So they often skip meetings or contacts if they feel it's about business and they're not ready. Instead of saying no.


So, the tip is – don't set sales as the goal on the first contact. Emphasize starting a relationship or introducing your company without further binding agreements or proposals. Right now, it's best to divide the business culture based on who we are dealing with. Let's discuss them one by one.


Business runs smoother once you have a trusted local partner by your side. They can support you in business but more importantly they share their inside knowledge with you. The main reason is – various organizations in Indonesia have their own style of business and way of dealing with it.


Knowing the rules before entering any facility is a must – a local partner will make sure you don't become a stranger. You will have an idea of who makes decisions in the organization and who has the greatest influence. In life, influencers may have more power than higher ranked ones.


While online research is also very useful, it does not indicate or replace what an insider would reveal. Therefore, start by building your circle of trust.


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.