indonesian business culture (2)
TRANSCRIPT
Cultural Diversity
INDONESIAN BUSINESS CULTURE
“Different fields, different grasshoppers; different seas, different fish” –Indonesian Proverb -
Hesty Oktariza | 014200900073
Indonesia Unity in Diversity
Source : youtube.com
Significance of Indonesia in the World
World’s 4th most populous country (229,965 million people in 2009)
World’s largest archipelago (more than 13,667 islands, consist of more than 300 ethnic)
World’s largest moeslem population, but Islam is not the only religion
Introduction to Indonesia
Indonesia is a mixture of Dutch, Malay, Chinese, Indian and Arabian heritage.
Rich of natural resources: oil & gas, minerals, forestry, agriculture and marine products including its stunning natural scenery.
Key Concept on Indonesia Business Culture
HierarchyFaceTimeGroup Thinking
Hierarchy plays a great role in Indonesian culture
Respect is shown to those with higher status, power, position, and age
Superiors are often called "bapak" or "ibu“ to show respects.
Key Concept on Indonesia Business Culture
HierarchyFaceTimeGroup Thinking
The concept of ‘face’ is about avoiding the cause of shame.
As a result, people are very careful with the way they interact and speak in order to maintain group harmony.
Indonesian is an indirect society in communication style.
Key Concept on Indonesia Business Culture
HierarchyFaceTimeGroup Thinking
In Indonesia, “Time is not Money”
Group harmony is more important
Indonesian doesn’t like rush in business, they take longer time to make consideration and decision
Key Concept on Indonesia Business Culture
HierarchyFaceTimeGroup Thinking
Indonesia is a collectivist society
Group harmony get higher importance than individual greed
People will define themselves according to their ethnic group, family and place of birth
Cultural Dimension of Indonesia
Power Distance Index (PDI)
Isra
el
Germ
any
Net
herla
ndsUSA
Japan
France
Hon
g Kon
gIn
dia
Wes
t Africa
Indon
esia
China
Rusia
0
20
40
60
80
100
13
35 38 40
54
68 6877 77 78 80
95
PDI
Large gaps between organizational structure in organization
Individuals are careful about expressing their opinion to superiors
Show proper respect to their boss
Superior issue directives and expect subordinates to speak only when allowed and unpleasantly surprised when subordinates freely air their opinions.
Cultural Dimension of Indonesia
Uncertainty Avoidance Index
Japa
n
Rusia
Franc
e
Isra
el
Germ
any
China
Wes
t Africa
Net
herla
nds
Indo
nesia USA
Indi
a
Hon
g Kon
g0
20
40
60
80
100 92 90 86 81
65 6054 53 48 46
4029
UAI
Society with low Uncertainty Avoidance Index tend to place greater emphasis on stability rather than innovation and change in order to reduce or minimize risk
Cultural Dimension of Indonesia
Collectivism
USA
Net
herla
nds
Franc
e
Germ
any
Isra
el
Rusia
Indi
a
Japa
n
Hon
g Kon
g
China
Wes
t Africa
Indo
nesia
0
20
40
60
80
100 9180
71 67
54 50 48 46
2520 20
14
Collectivism
Opinions are determined by group membersPeople see themselves first as part of the group and are concern with the welfare of group
Doing Business in Indonesia
Do’s Don’ts
Be polite Respect Make eye contact and friendly smile Use pleasant voice Be genial Avoid confrontation and
disharmony Be patience with tardiness Build interpersonal relationship Low profile Understand status differencesAddress Indonesia colleague with
proper proffesional titles
Be aggresive Use threatening words Use the left hand in
receiving or eating Show outburst emotion Spit in the presence of
people Be angry if Indonesian ask
your privacy Make someone lose their
“face” Offer alcohol, leather,
certain animal products or knives as gifts to your Indonesian counterparts.
Business Ethics in Indonesia
General EtiquetteIntroductionGreetingRespect on Values and BelievesAppearanceNegotiationBusiness Meeting EtiquetteDining EtiquetteGift Giving EtiquetteWomen in Business
Recommendation :Doing Business in Indonesia
http://il.youtube.com/watch?v=3z8Y3LknZFo
ConclusionDoing business in Indonesia need
understanding of its hierarchy and bureaucracies
Indonesia is a collectivist, risk avoider and high power distance country
Investing in personal relationship is critical to success in working with Indonesian
Communication in Indonesia work by indirect manner.
Indonesians do not rush in making business
