Doing Business in Australia and New Zealand Compared to Indonesia

Only available on StudyMode
  • Download(s) : 1457
  • Published : September 30, 2012
Open Document
Text Preview
ralIndonesia is the largest economy in South East Asia and its growth is improving by the day, it appears to be in the top grouping of emerging markets. Many countries found Indonesia to be the country to invest in and/or being an ideal business partner and good market for their businesses / goods. However, countries from different cultures have vast differences from the Indonesian culture, where it is important to recognize that people from different cultures have are different in a variety of ways, such as different ways of looking at things, different ways of dressing and different ways of expressing personality/goodness. Australians and New Zealanders are increasingly sharing trade and education with Indonesia, even though they are geographically in the Asian sphere, but have very different cultures from any other country in Asia. Therefore, Australians and New Zealanders must explore the cultural differences between their local culture and the Indonesian culture, so they have to be open to learn on how to operate in the Indonesian cultural settings. Indonesia is a relationship driven market. If a party is not known to them, companies may not illustrate quick response to emails, and patience is one essential element in doing business successfully in Indonesia. There is a need to develop a long term relationship in Indonesia to produce a prophet compared to Australia or New Zealand where relationships rely on shared expectations such as how first contacts occur, how appointments are set and kept and how deal should be closed. It can sometimes be more effective to provide incentives or gifts rather than discounts, eg. free trips overseas for good sales rather than products sold at cheaper prices to them. Usually the foreign manager’s priorities is to focus on tasks priorities of corporate rather than human priorities which may not be the best way to achieve productivity and effectiveness because Indonesians managers usually work differently as they place high value on harmony, understanding and mutual respect. In some cases this emphasis outweighs the importance of job performance and productivity. Indonesia is an Islamic country and Indonesians place high value on their beliefs, so Australians/New Zealanders should make an effort to adapt to the culture, taboos and languages of their Indonesian colleagues, such as Prayer times, religious obligations, wedding, funeral, etc). Indonesian managers on the other hand have to be willing to adapt to western work environments such as strategic planning, timetable deadlines, efficiency and punctuality, handling conflict and taking responsibility. On the other hand, there are some moral and cross-socio-cultural differences referred to among both cultures such as Indonesia is predominantly a Muslim country, which can cause some friction when Indonesians encounter liberals from Australia. As a Muslim country, Indonesia frowns upon the consumption of alcohol, homosexuality and the display of flesh by women. In contrast, Australians drink a lot of alcohol, have gay politicians, have a homosexual street party that receives government and media support, and Australian women are accustomed to wearing very little clothing. The Indonesian archipelago is unique not only on an Asian scale, but on a global scale. It represents approximately 17000 Islands! And the Islands span more than 5000KM. It is unique in terms of extent and diversity; there are eight major islands in this massive chain, the largest landmasses consist of Sumatra, Java, Kalimantan (Borneo), Sulawesi (Celebes) and Irian Jaya (the western half of Papua New Guinea). The smaller islands fall into two main groups: the Molluccas to the northeast, and the lesser Sunda chain east of Bali. Bali is a unique island, which for a number of reasons can be put into a class of its own. Java and Bali have fertile volcanic soils while elsewhere the land is rich in mineral resources such as oil, natural gas and coal. There are vast...
tracking img