Business Culture of Indonesia
Indonesia and its Business Culture
Religion and culture:
-Most Indonesian businessmen are Chinese and mostly non-Muslim.
-Many are Christians but because Indonesia is dominated by Muslims, it could be offensive and impolite to eat during the fasting hours of Ramadan.
-Superstitions: There are many superstitions in Indonesia due to the folklores and belief in Black Magic. One such superstition is to avoid making payments at night as it is believed that it may lead to bankruptcy of business failure.
Physical and spatial distances
-Males and females should not have any physical contact in public except a handshake.
Greeting protocol:
-Greeting should be done in a formal and respectful way with a handshake and “selamat (word of greeting)” and many follow the Muslim culture as to place their hand over their heart after the handshake or to bow slightly.
-Statuses and age is important and greetings should be directed at the most senior person first.
-Some do not have surnames (single-worded names) because during the anti-Chinese period slightly after the Suharto reign, many with Chinese surnames were attacked or discriminated thus they either adopt a native surname or simply drop theirs.
Gift-giving to
-Chinese:
-Do not give sharp items or an umbrella which seems to signify severing of relationships.
-Wrap nicely with red and gold paper for auspiciousness.
-For business deals involving a lot of money or long-term partnership, huge gifts such as cars and television sets would be considered appropriate.
-It is polite to decline a gift once, before accepting it so as not to appear greedy.
-Muslims:
-Do not offer alcohol and leather products.
-Food offered should be Halal.
-Offer gifts with right-hand only as the left-hand is considered unclean.
Timeliness:
-Indonesians are not overly concerned about punctuality and prefer their meetings to be in a more relaxed-mode. They do not like to be hurried or rushed. However, you should be on-time.
Religion and culture:
-Most Indonesian businessmen are Chinese and mostly non-Muslim.
-Many are Christians but because Indonesia is dominated by Muslims, it could be offensive and impolite to eat during the fasting hours of Ramadan.
-Superstitions: There are many superstitions in Indonesia due to the folklores and belief in Black Magic. One such superstition is to avoid making payments at night as it is believed that it may lead to bankruptcy of business failure.
Physical and spatial distances
-Males and females should not have any physical contact in public except a handshake.
Greeting protocol:
-Greeting should be done in a formal and respectful way with a handshake and “selamat (word of greeting)” and many follow the Muslim culture as to place their hand over their heart after the handshake or to bow slightly.
-Statuses and age is important and greetings should be directed at the most senior person first.
-Some do not have surnames (single-worded names) because during the anti-Chinese period slightly after the Suharto reign, many with Chinese surnames were attacked or discriminated thus they either adopt a native surname or simply drop theirs.
Gift-giving to
-Chinese:
-Do not give sharp items or an umbrella which seems to signify severing of relationships.
-Wrap nicely with red and gold paper for auspiciousness.
-For business deals involving a lot of money or long-term partnership, huge gifts such as cars and television sets would be considered appropriate.
-It is polite to decline a gift once, before accepting it so as not to appear greedy.
-Muslims:
-Do not offer alcohol and leather products.
-Food offered should be Halal.
-Offer gifts with right-hand only as the left-hand is considered unclean.
Timeliness:
-Indonesians are not overly concerned about punctuality and prefer their meetings to be in a more relaxed-mode. They do not like to be hurried or rushed. However, you should be on-time.