International Webinar 2022 - Business culture, how to step forward - part 9

Indonesian academics from STEKOM University in an international seminar explained the importance of foreign investors to study Indonesian culture before they decide to invest. All foreign investors must learn about a country's business culture before investing there. As an emerging market in Asia, Indonesia presents unique challenges for foreigners wishing to invest in Indonesia. The country's business culture is influenced by specific factors that contribute to society and bureaucracy.


Most Indonesians have a smooth communication style. They tend to say something different from what they mean by "polite". Some Indonesians may be direct, but subtlety is a common pattern of communication that foreign workers or expatriates often encounter. Indonesians also tend to be less confrontational when raising concerns.
 

Many expats find that speaking face-to-face rarely works among Indonesian colleagues (except in an emergency). Learning Indonesian and being more approachable in communication style is often more effective.


Just like the Japanese, many Indonesians uphold their dignity. Most people don't like being criticized in public, let alone being humiliated. Many cases of resignation or poor communication style stem from this damaged sense of dignity. Expats, especially those from countries with more direct cultures, must learn to be more careful in their communications.
 

Generally, criticizing someone personally is an effective way to solve small-scale problems. Personal criticism of the individual who deserves it will keep everyone from being negative.


While many people prefer to keep personal relationships away from the workplace, the workplace in Indonesia is not always rigid. People love it when you can connect over small talk or a friendly meal. Having a friendly demeanor can help expatriates to form good relationships with colleagues and workers. They tend to cooperate better with someone they have a good relationship with.


One of the drawbacks of this factor is “infringement of privacy”. Some Indonesians don't hesitate to ask questions that might be considered personal in other countries, such as age, marital status, or religion. A foreign worker or expatriate needs to be prepared for such questions.


Public opinion and consensus are not only important in Indonesia. They are seen as part of the culture, denoted by phrases such as “deliberation for consensus” (literally “discussion to reach agreement”). The expatriate must find a way to strike a deal that benefits the company without upsetting the majority.


Sometimes, other factors can influence consensus, such as the opinions of senior officials. Government offices and companies in the formal sector still prioritize seniority like in Japan. However, growing companies and startups are starting to leave extreme seniority behind.


Most Indonesians pay attention to appearance in a formal setting. Even in creative industries with a more relaxed work environment, men and women are still expected to dress appropriately. Typically, this means suits or at least collared shirts for men, simple dresses, skirts, and pants for women, "work denim," and no sleeveless outfits. Certain companies (especially in the formal sector) expect their employees to wear batik every Thursday or Friday.


Expats and investors visiting Indonesia need to connect with someone who can help them bridge the cultural divide. For more information on how to invest in Indonesia, contact Smart Legal Consulting at Smartlegal.id. Business consulting services provide services and consultations about starting a business or investing in Indonesia.


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.