Indonesia

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Indonesia

• Craig Arrowsmith
• Teresa Chen
• Aaron Daniels
• Heather Hash
• Mandy Hon
• Nagisa Ishikawa
• Ellen Lindorff
• Michael Powers

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(No Transcript)
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Business Context

• Indonesia Basics

• Blend of Hindu, Muslim and Chinese cultural
  traits
• Largest Muslim population
• 88 Muslim
• Low tolerance for uncertainty
• Cultural desire to control their world in order
  to eliminate or avoid the unexpected
• Rule-oriented with laws, rules, regulations, and
  controls in order to reduce the amount of
  uncertainty
• Inequalities of power and wealth have been
  allowed to grow within the society
• Risk adverse

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Business Context

• Indonesia Basics

• Collectivist as compared to Individualist
• Long-term commitments to member groups
• Leaders have virtually ultimate power and
  authority

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Business Context

• Language Differences

• Lost in translation there is no literal
  translation for the word no
• Yes often means No in Indonesian society
• Smiling can often convey embarrassment,
  nervousness, disapproval or other signs of
  distress
• Indonesians will sometimes give the wrong answer
  when confronted with a question they do not know
  the answer to in order to save face

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Business Context

• Gifts

• Gifts, though small, are frequently given
• Gifts are especially critical to sealing a deal,
  and presented after the negotiation begins, but
  well before the conclusion of negotiations
• Gifts are not opened when given. This practice
  shows the recipient is gracious, not greedy
• Do not give gifts or pictures that show dogs as
  they are considered unclean

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Business Context

• Gifts - Chinese

• A gift may be refused three times before
  accepting
• On Chinese New Year, give children and people you
  frequently deal with, who are not government
  employees, a gift of money
• The money must be an even number of new bills,
  and presented in a red envelope
• Do not give a knife, scissors, clock,
  handkerchief, straw sandals, an umbrella, a crane
  or stork, or the number four
• Stay away from the colors white, black, or blue

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Business Context

• Gifts

• Do not give Muslims gifts of alcohol or pork
• This would also include perfume since it is made
  with alcohol, and any leather product made from
  pigskin
• Do not give Hindus gifts containing beef or items
  made of cowhide

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Business Context

• Bribery

• Bribery is common at most levels of society and
  is known as 'facilitating payments
• Bribery expected
• Necessary to instill a sense of urgency among
  workers

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Business Context

• Indonesian Government

• Government officials are widely involved in
  business affairs
• Start with the relevant department and work your
  way to the top, rather than go straight to the
  man in charge
• Building relationships is essential
• The government tends to strike a balance by
  awarding contracts to different countries
• Political connections
• Partners help seal deals
• Frequent travel to Indonesia and meetings with
  government officials is an important way of
  showing continued interest
• Officials want to see your presence in, and
  commitment to Indonesia

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Social Protocol

• Appearance

• An umbrella in the rainy season is considered
  essential
• Jeans may be worn for very casual, but never
  shorts for men or women

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Social Protocol

• Appearance For Men

• Men should wear coat and tie until appropriate to
  dress more casually
• Follow the lead of those you are meeting with
• Men generally wear dark slacks, long sleeve and
  light colored shirt, and tie (no jacket)
• Lounge suit" business suit
• Men may find in a very casual business office
  that a short sleeve shirt and no tie is
  appropriate

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Social Protocol

• Appearance for Women
• Dress conservatively
• Formal business dress
• Long sleeved blouses
• Skirts and dresses below the knee
• Neutral Colors

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Social Protocol

• Greetings

• Shake hands upon greeting and leaving, and always
  using your right hand
• Handshake should be limp and lasts 10-15 seconds
• Greetings should never be rushed. They carry
  importance and formality
• Use your right hand in all social encounters,
  never offer or receive something with your left

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Social Protocol

• Greetings

• Slightly bow your head upon greeting a guest or
  host
• Speak softly
• Allow superiors to precede you in doorways and at
  formal gatherings
• Muslim greeting Assalamo Alaikum
• May peace be upon you and may God's blessings be
  with you

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Social Protocol

• Business Card Etiquette

• Offer your card with your right hand, your left
  hand supporting your right wrist.
• Your card will be received with both hands
• Time should be taken to carefully read the card
• Never carry your business cards, or place another
  person's business card in a back pocket
• Print your business cards in English, with the
  reverse side printed in Indonesian

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Social Protocol

• Titles

• Address each person using his/her title plus full
  name
• Rank and status are very important in this
  culture
• Honorific title for Muslims who have made a
  pilgrimage to Mecca
• Haji for men
• Hajjah for women
• Mr., Madam, Mrs. or Miss is used if a person does
  not have a title
• People are normally called by their first name,
  as in Mr. Robert or Miss Susan, rather than using
  their last name

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Social Protocol

• Eating Customs

• Expect your host will pay when invited to dinner
• When eating or drinking, don't start until
  invited to
• Rise when your host/hostess enters the room
• Leaving food on your plate is impolite
• Eat all the food you are served
• Only use your right hand for eating, when
  touching someone, or handling money/papers
• Talking is impolite while eating dinner.
  Conversation is reserved for before or after the
  meal

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Social Protocol

• Social Taboos

• Keep both feet on the floor when sitting
• don't cross your legs
• Don't sit on a table or desk
• When pointing, use a generalized gesture of the
  hand
• Do not crook your index finger to call someone
  over. This gesture is offensive
• Never touch someone's head or back
• Be calm and subtle and don't rebut something or
  someone

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Communication, Management, Decision-making, and
Meeting Styles

• Concept of Time

• Be on time for any meetings
• Indonesian business associates will probably
  arrive late. However, you are expected on time,
  and should never make any comment about the
  meeting starting late or any person arriving late
• Time is considered limitless
• Leisurely pace in all walks of life
• Hurrying is impolite
• Indonesians are not punctual, but expect
  foreigners to be on time
• Set tasks based on what is achievable rather than
  follow rigid schedules
• Flexibility and patience are critical to success
• To convey urgency, ask in person with a gift

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Cultural Dimensions

• Behavior/Mannerism - General

• Never allow your voice to get loud, whether in
  anger or joy
• Expressing emotion such as anger in public
  through tone of voice, loudness, or body language
  is always inappropriate
• Never eat while walking in public, or chew on a
  toothpick
• Yawning in public is inappropriate
• Cover your mouth if you must yawn

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Cultural Dimensions

• Behavior/Mannerism - Women

• Displays of overly aggressive, domineering
  behavior in women will not be well received
• Expected to be competent as men, however they
  must calmly assert their influence and authority
  in a firm yet restrained manner
• Do not offer a handshake to an Indonesian man
• Should a man extend his hand, always shake hands.
  Some Indonesian men may follow western business
  customs

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Cultural Dimensions

• Behavior/Mannerism - Men

• For religious reasons (Muslim and Hindu) men and
  women do not touch in public in this culture
• Do not offer to shake hands with an Indonesian
  woman
• Should an Indonesian woman offer to shake hands,
  accept
• Some Indonesian women may practice western
  business customs

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Questions?