Doing Business in Indonesia
- Make sure your passport is in order: Do not arrive in
Indonesia with a passport having less than six months validity.
- Indonesia is a very diverse country, with about 365 different
ethnic groups. Some Indonesians are traditional in culture,
others may be considerably "Westernized." Many Indonesians
do not conduct business transactions or make decisions in
the same direct fashion Europeans and Americans do. So one
should be prepared to spend a good deal of time with clients
before getting down to the business transaction.
- Traditional Javanese culture emphasizes harmony and the
word "no" is rarely used. This can make it difficult for
a Westerner to ascertain exactly how a business proposal
is being received. Patience and the development of personal
relations is the key. Because Indonesians do business with
"friends," people that they know, developing a rapport is
crucial. While quality and price are important, they are
secondary to the personal interaction of the business partners.
- During business meetings, tea or coffee is almost always
served and should be accepted. However, it should not be
consumed until the host invites you to do so, which may
not occur until the end of the meeting.
- Learn A Little Bahasa: A little Indonesian language endears
you to your audience so do make an effort to at least remember
some commonly-used greetings such as selamat pagi (Good
morning), selamat siang (good day till 3 pm), selamat malam
(good evening/night) and terima kasih (thank you).
- Leave A Small Gift if you can: The giving of small gifts
such as books on your country (hard-covered copies preferred
for someone important), is desirable but not vital when
visiting. Often the leaving of a small corporate gift such
as a pen is sufficient when making company calls.
- Presentation Pointers: In giving presentations assess
your audience in advance and use simple, jargon-free English.
Keep words to a minimum and visual display to a maximum.
The same applies to the preparation of brochures.
- Avoid Using the Left Hand: Do not pass or receive anything
especially a gift with the left hand. The same applies in
giving out your business card - it should be handed over
preferably with two hands or the right hand.
- Keep your Feet on the Floor: Do not show the soles of
your feet when seated in meetings. Keep the feet squarely
on the floor if possible.
- Tipping: Do not tip in starred hotels where "service"
is added to
all charges.
- Do leave the small change (less than Rp1000) with a taxi
driver.
- Others: Avoid touching or reaching over a person's head,
especially that of an older Javanese person.
Travel Considerations
Visas:
Citizens of most countries can stay 60 days without a visa.
Please check with Indonesian embassy about your country.
Approx. Cost for Visitors
The Asian economic meltdown has impacted badly on the rupiah;
it's currently on a stockmarket rollercoaster ride. This
means that any costs quoted here will only be a ballpark
figure.
Budget Meal: US$0.25-2
Mid-range: US$2-5
Top-end: US$5 and upwards
Lodging
Budget: US$2-5
Mid-range: US$5-20
Top-end: US$20 and upwards
Other Travel Considerations
- The best time for an initial business trip is September
through June, as school holidays and vacation time in the
summer months can impact on the availability of many business
people. Visitors should check the local holiday schedule
before traveling to Indonesia.
- The normal business attire is a lightweight business suit
or white shirt, tie and slacks for men, and a business suit
or dress for women.
- Travellers cheques and cash (preferably US dollars) are
the way to go in Indonesia. Credit cards are accepted by
expensive hotels, restaurants and shops, but not for day-to-day
expenses. In major centres, you can always find a bank that
will advance cash on Visa or MasterCard. Credit card advances
through ATMs are possible, but limited.
- Tipping is not a normal practice in Indonesia but is often
expected for special service. Someone who carries your bag
or guides you around a tourist attraction will expect a
tip. Jakarta taxi drivers expect you to round the fare up
to the next 500 rp. Hotel porters expect a few hundred rupiah
per bag.
- Many everyday purchases normally require bargaining but
in the current economic turmoil you'd do well to look to
your conscience before applying this too stringently. Tourism
has taken a severe downturn in most parts of the archipelago
and, despite price hikes, hotel rooms are liable to be discounted.
General Business Hours
Govt:
8.00 am to 4.30 pm Monday to Friday
Commercial Establishments:
8.00 am to 4.00 pm Monday to Friday
8.00 am to 1.00 pm Saturday
Banks
8.00 am to 4.00 pm Monday to Friday
8.00 am to 1.00 pm Saturday
Shops
9.00 am to 10.00 pm Monday to Saturday
** Muslim religious prayer time is from 1100-1200 every
Friday. When making a business trip do not expect to schedule
meetings
for Friday afternoons or Saturdays.
Usual Holidays and Festivals
(please check actual dates with embassy)
Aug. 17 - Independence Day
Nov. 17 Ascension of Mohammed
Dec 25 Christmas Day
Jan 1 - New Year's Day
Jan. 19-20 Idul Fitri (End of Ramjan) -
March 18 Saka New Year (Nyepi) (Hindu New Year)
May 30 Waisak (Buddhist New Year)
July 25 Mohammed's Birthday
Some Useful Sources of Information
Markets and Sectors
http://tradeport.org/ts/countries/indonesia/sectors.html
Market Access
http://www.tradeport.org/ts/countries/indonesia/market.html
Investment Climate
http://www.tradeport.org/ts/countries/indonesia/climate.html
