agenda - international university of...
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Group : Lucky7 Felicia Gojali
Hajime Kato
Kenichi Yamasaki
Sakshi Chawla
Thanat TengAmnuay
INDONESIA
Cross-Cultural Management
Country Culture Spotlight
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Agenda
• Introduction
• Cultural Overview
• Communication Style
• Business environment
• Business Etiquette
• Summary
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• http://www.youtube.com/watch?v=sj6fqxPWEo0
• 90 seconds
Introduction Video
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Introduction
Religion Group Ethnic Group
Around 490!!
Javanese is majority
Muslim is majority
The biggest number of
Muslim in one country
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• 740 Languages (Indonesian)
• Rainy and Dry Seasons
4th
Introduction
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• Area : 1,904,569km^2(15th) • More than 17,000 islands
Geographical Features
• 3 time zones • 5 main islands
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Capital: Jakarta
10M population Metropolis Heavy traffic Jam!!
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Traditional Cloth: Batik
Batik is a method of dyeing cloth and of making it resistant using wax
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Food: Nasi Goreng
Literally meaning "fried rice" in Indonesian
Fried rice, cooking oil, spiced with kecap manis (sweet soy sauce),
shallot, garlic, tamarind and chilli and accompanied with other
ingredients, particularly egg, chicken and prawns.
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Transportation
Angkot Bus without bus stop
Ojek Motorcycle taxi
Fare needs negotiation in advance
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Fast Food
FUN FACTS
• What is the common menu between
McDonald's, KFC, Burger King, and
Wendy's in Indonesia?
A. Chicken Burger B. Fish & Chips C. Chicken & Rice D. Caesar Salad
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Fast Food
FUN FACTS
• Answer is C : Every fast food stores
sell Chicken with rice
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Cultural Overview
5 Indonesian core cultural values
• Family and hierarchical structure • Conflict avoidance • Subjugation to nature • Saving face • Relaxed time perspective
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Cultural Overview
Hofstede’s Cultural Dimensions
0
20
40
60
80
100
120
Indonesia
India
Japan
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Cultural Overview
Hofstede’s Cultural Dimensions
Large Power Distance
Collectivism
Low Masculine
Medium Low Uncertainty Avoidance
Short Term Oriented
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Cultural Overview
Large power distance
• Hierarchical structure • Respect to elder’s wisdoms
Salim is the proper handshake to respect superior person.
mile.mmu.edu.my
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Cultural Overview
Large power distance
• Hierarchical structure • Respect to elder’s wisdoms
Ritualized sungkem often performed in wedding, bride giving respect to groom. And both of them giving respect to their parents.
www.demokrat.or.id
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Cultural Overview
Collectivism society
• Gotong Royong (joint bearing of burdens) • Extended-Family
http://one-tour.yuman.fr/2013/11/the-gotong-royong-spirit-bali/
It is common for Indonesian to help community and neighbors with public works.
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Cultural Overview
Collectivism society
• Gotong Royong (joint bearing of burdens) • Extended-Family
Family is the most important in Indonesia. Most of them are extended-families.
www.jasongraham.org
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Cultural Overview
Femininity society
• Family matter
www.globalindonesianvoices.com
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Cultural Overview
Medium-Low Uncertainty Avoidance
• Asal bapak senang (Keep the Boss Happy) • Musyawarah (Consensus decision making)
ikhwanabdillah.wordpress.com
Indonesian try to avoid risk of losing job by trying to keep the boss happy.
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Cultural Overview
Medium-Low Uncertainty Avoidance
• Asal bapak senang (Keep the Boss Happy) • Musyawarah (Consensus decision making)
mgbkmalang.wordpress.com
In decision making process, Indonesian will ask for everyone’s opinions and try to find the best solution that everyone hapy.
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Cultural Overview
Short-term Oriented Society
• Saving Face • Conflict avoidance
www.indo5.net
Concept of Saving Face is to avoid embarrassing others in the public.
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• current units (rupiah)
• after redenomination
Redenomination
FUN FACTS
• How many digit will be deduct
from Redenomination?
A 0
B 00
C 000
D 0000
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Redenomination
FUN FACTS
• current units (rupiah)
• after redenomination
10,000
10
• Answer is C: 3 Zeroes will be
deducted
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• Conversation
- Common questions
Communication Style
• http://www.youtube.com/watch?v=UILVV06Zcdo
• 30 seconds
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• Personal Space and Social Space
- Friends and Family : 60 – 120 cm ( 2 – 4 feet)
- Business associates : 120 – 300 cm ( 4 – 10 feet)
• Eye Contact
- Direct eye contact should be avoided in general
Communication Style
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• Display
- Indonesians are good at hiding their emotions
- Indonesians prefer indirect expressions
Communication Style
Belum.
Tidak senang.
Lebih baik tidak.
Tidak boleh.
Tidak terima.
Maaf tidak.
Jangan.
Nanti kali lain saja.
Kapan-kapan, deh.
Bukan.
Enggak.
Tidak.
Terima kasih.
Tidak usah.
Tidak mau.
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• Things to talk about
- Indonesian value family highly
Communication Style
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• Gestures to avoid
Communication Style
- Never give or receive something by the left hand
- Don’t put your hands on your hips while talking
- Do not touch someone especially among opposite gender
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Rice Consumption
FUN FACTS
• What is the Indonesian rice consumption per person per year? (Kg)
A B C D
139
100
63 60
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Rice Consumption
FUN FACTS
• Answer is A : Individual Indonesian consumes rice 139 kg per year. More than 2 times compared with Japanese
Indonesia China Malaysia Japan
139
100
63 60
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Business Environment
Fast Growing GDP
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Business Environment
Industry in Indonesia
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Religious holiday:
• Islam: Birth of Prophet Muhammad, Ascension of the Prophet, Eid al Fitr, Feast of the Sacrifice, Islamic New Year
• Christian: Good Friday, Ascension Day, Christmas
• Hindu: Day of Silence
• Buddha: Buddha's Birthday
Others:
• New Year
• Chinese New Year
• Labor Day
• Independence Day
Business Environment
Public Holiday
Average: 15 days per year
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• Mandatory allowance given by employer to the workers to celebrate religious holiday
• Regulated in Indonesian Minister of Manpower Regulation No. PER-04/MEN/1994 dated 16 September 1994
• Paid to employee who has minimum 3 months of continuous service to the company
Business Environment
Religious holiday allowance (THR)
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• Common religious holiday for THR payment:
– Moslem: Eid al-Fitr
– Christian: Christmas
– Budhist: Vesak
– Hindu: Day of Silence
• Payment is made at least 7 days
before the religious holiday
• Amount is minimum 1 month of salary
Business Environment
Religious holiday allowance (THR)
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• important religious holiday celebrated by Muslims
• conclusion of 29-30 days of dawn-to-sunset fasting
• Eid al-Fitr tradition in Indonesia:
– Mudik/Homecoming
– Ketupat
Business Environment
Eid al-Fitr
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Indonesia Flag
FUN FACTS
• Which Flag is Indonesia flag?
A. B. C.
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FUN FACTS
• Answer is A: But did you know that
Indonesia Flag and Monaco flag using the
same color composition, just Indonesia Flag
is slightly wider than Monaco Flag
Indonesia Flag
Indonesia Poland Netherlands
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Business Etiquettes
Link: https://www.youtube.com/watch?v=SmcvvLI87mg
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Working Practices
• Business hours – 8AM to 5PM (Monday to Friday) and 8AM to 1PM on Saturdays
• Flexible attitude towards TIME
(also referred as “RUBBER TIME”)
Business Etiquettes
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Structure and Hierarchy
• Organizations tend to be Hierarchical
• Ideas and decisions are generated from the top
• Men are addressed as “BAPAK” and women as “IBU”
Business Etiquettes
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Working Relationships
• Relationships are based on trust and familiarity
• Networks and friendship is important
• Great emphasis on age and respect
• Gifts are appreciated but…
Business Etiquettes
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Business Practices
• Language used is either English or Bahasa Indonesia
• Handshakes are exchanged before and after business meetings
• Greetings are accompanied by a slight bow
• Business cards are essential items
Business Etiquettes
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Business Wear
• For men- a suit and tie must for meetings or BATIK shirts can also be worn in formal situations
• For women- blouse that covers at least their upper arms and skirts knee length or longer
Business Etiquettes
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Coffee
FUN FACTS
• Kopi Luwak is the most expensive coffee from Indonesia, Why this coffee is so special?
A. Special Coffee tree B. Special animal C. Special blending process
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FUN FACTS
• Answer is B: Kopi Luwak is made
from Asian palm civet (Luwak) by let
them eat fresh coffee beans and then
excrete it out. And then we drink it!
Coffee
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Culture • One of the most Collectivism society
• Family is very important
Communication
• High contexts culture
• Non-verbal behavior
Business
• Building relationship by trust & familiarity
• Seniority and Hierarchy are emphasized
Summary
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Terima kasih Thank you Q & A