Preview

Doing a Business in Indonesia

Powerful Essays
Open Document
Open Document
1198 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Doing a Business in Indonesia
Abstract
This paper explores the ways on how U.S. organization should communicate with the Indonesians and what they should look into before approaching a foreign business. There are a few important factors discussed in this paper and they are the cultures, ethnicity, language, business etiquettes such as clothing, gestures, age, and date format. These factors should be looked at closely in order to have a successful business in Indonesia.

To start a business in a foreign country, it is crucial to understand the culture, social, customs and language of the country to be successful. Understanding the cultures help us predict how a person is going to act, negotiate, speak and make decisions (Morrison & Conoway, 2006). The cultures are different between the United States and Indonesia. What may be acceptable in U.S may not be acceptable in Indonesia; in other words they have different perceptions, a slight mistake can cause the potential business project to backfire. Javanese culture should be looked at when we are making a reference to Indonesia because Javanese population comprise approximately 45 per cent of the Indonesian population and in addition, the attitudes and worldview penetrates the Indonesian bureaucracy, military and government (Dean, 2000). There are a few objectives that should be considered, such as the language used, hand gestures, clothing, and more.
First of all, English is widely spoken in Indonesia especially in Jakarta, amongst the business people and youngsters. The primary language in Indonesia is Bahasa Indonesia so interpretation might be needed in countries outside Jakarta where English language is not commonly used (UKTI, 2010). “Terima Kasih” meaning “Thank You” in Bahasa should be said after the meeting or when necessary, to call a man, one should refer them as “Bapak”; and “Ibu” to a woman because it shows respect for the culture as well as building the relationship with one another.
There are different ethnicity in



References: Morrison, T., & Conoway, W. A. (2006). Kiss, bow, or shake hands: The bestselling guide to doing business in more than 60 countries. (2nd ed., p. 242-245). Massachusetts: Adams Media. UKTI Team. (2010). Doing business in Indonesia. UK Trade & Investment, Retrieved from http://www.ukti.gov.uk/export/countries/asiapacific/southeastasia/indonesia/doingbusiness.html About Indonesia and Bahasa Indonesia. (2008). Retrieved from http://www.languagestudiesindonesia.com/ Dean, G. (2000). Doing business in Indonesia. Retrieved from http://okusi.net/garydean/works/Doing Business in Indonesia.pdf Varner, I., & Beamer, L. (2010). Intercultural communication in the global workplace. (5th ed.). New York, New York: McGraw-Hill/Irwin. Moran, R. T., Harris, P. R., & Moran, S. V. (2007). Managing cultural differences, global leadership strategies for the 21st century. (7th ed., p. 401). Butterworth-Heinemann.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Xcom 285 Appendix C

    • 311 Words
    • 2 Pages

    |Brazil |Preferred communication would be |Personal space and customary to give a gift|Stay formal and use a slower pace in |Using a translator will insure |…

    • 311 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    One of the most memorable cultural miscalculations in recent memory happened during the first few minutes of President Richard M. Nixon’s visit to Brazil. After landing in Brazil, for whatever reason, Dick decided to express his pleasure with the “A-Okay” hand sign. One can only assume that the leader of the free-world did not intend to “flip-off” or give “the bird” to a friendly nation, but that’s exactly what his gesture meant in Brazil. Perhaps the Brazilian people understood its other meaning in the United States, realizing that Nixon didn’t know better, but it certainly left a negative impression, and it was a BIG deal. (Wade, 2004) Cultural differences need to be considered in international business just the same as politics. In this study, well explore cultural miscalculations made by two international businesses, then we’ll examine one approach toward managing cultural issues in foreign markets, and finally, recommendations for businesses trying to understand cultural differences and avoid mistakes.…

    • 895 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Lauring, J. Journal of Business Communication. Intercultural Organizational Communication: the Social Organizing of Interaction in International Encounters, Jul2011, Vol. 48 Issue 3, p231-255. 25p. 1 Diagram. DOI: 10.1177/0021943611406500.…

    • 2137 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    As companies expand into new markets and globalization becomes more and more a part of world economics, cultural dilemmas are sure to surface. Different cultures have developed different sets of values, laws, regulations, attitudes, and ethics. Communication styles, ways of conducting business, and etiquette can vary drastically from culture to culture. Something as simple as a common hand gesture can have a completely opposite meaning from on nation to another. Due to these cultural differences, organizations must be very careful when expanding their enterprise into new countries.…

    • 1245 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    References: Intercultural Communication Competence in Business: Communication between Japanese and Americans. (2011). Retrieved from http://www.immi.se/intercultural/nr26/kobayashi-26.htm…

    • 698 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    We are living in a period were trade is becoming more global by the day. Taxes and economic barriers seem to be like symptoms - from a disease - that fade away, as time goes by. The ability of fast communication between people and places has boosted many companies to expand in other countries. Yet, cultural and linguistic differentiations are the most sustainable features companies need to take under consideration, in a strategic planning of setting up abroad. A firm needs to become progressively more aware of the foreign cultures when aiming in a successful future in an international business environment. Attitudes towards work and material possessions, entrepreneurship, willingness to accept risk, politics, religion, customs, the role of the woman in society, social classes, respect of the law and social institutions, and their reflection on trade and business, should be examined very carefully.…

    • 1428 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    Jogulu, Uma D. 2010. “Culturally-linked leadership styles.” Leadership & Organization Development Journal 31 (8): 705-719. doi: 10.1108/01437731011094766 #sthash.tA7oSvk3.dpuf…

    • 3026 Words
    • 10 Pages
    Powerful Essays
  • Good Essays

    Ethical Dilemma

    • 812 Words
    • 4 Pages

    Moran, R. T., Harris, P. R., & Moran, S. V. (2007). Managing cultural differences, global leadership strategies for the 21st century. (7th ed.). Burlington, MA: Butterworth-Heinemann.…

    • 812 Words
    • 4 Pages
    Good Essays
  • Better Essays

    McLean, J., & Lewis, R.D. (2010). Communicating across Cultures. Manager: British Journal of Administrative Management, (71), 30-31.…

    • 1113 Words
    • 4 Pages
    Better Essays
  • Best Essays

    Harvey, M.G., & Griffith, D.A. (2002, July/August). Developing effective intercultural relationships: The importance of communication strategies. Thunderbird International Business Review, 44(4), 455-476. (B) Retrieved April 12, 2010, from Business Source Complete database.…

    • 2162 Words
    • 9 Pages
    Best Essays
  • Satisfactory Essays

    Burton, E. L. (2011). Cross-cultural/international communication. In Encyclopedia of Small Business(4th ed., Vol. 1, pp. 338-342). Detroit: Gale. Retrieved from http://go.galegroup.com.proxy.itt-tech.edu/ps/i.do?id=GALE|CX2343700156&v=2.1&u=itted&it=r&p=GVRL&sw=w…

    • 444 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    DVD, this in turn will have a flow on effect to the students as they will also benefit…

    • 425 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Five Guys in Malaysia

    • 3752 Words
    • 16 Pages

    Our group has been chosen as a consulting team by the domestic organization of Five Guys restaurant here in the United States. Five Guys has hired us with the purpose of wanting to expand their successful restaurant chain into other parts of the world. Our goal as their consulting firm is to help them flourish in taking their first step in globalizing their domestic organization into a multinational company. We believe that their first foot step in foreign land should be imprinted in Malaysia, specifically the city of Kuala Lumpur located inside the region of Klang Valley. Before moving a national company into a country like Malaysia for the first time there are many aspects of business and culture that must be taken into consideration and many decisions that must be made. Our group believes that it is crucial that you know and understand your company, which in our case is Five Guys, your consumer and your competitors. From there it is crucial that you learn and adapt to the culture of Malaysia and the way that they are accustomed to doing things. Once you know those things that you can implement your communication and management strategies and you will be prepared to handle any cultural, social or technological issues that arise.…

    • 3752 Words
    • 16 Pages
    Powerful Essays
  • Powerful Essays

    Indonesia is the world’s fourth most populous country with a population of 232.5 million in 2010, and the largest economy in Southeast Asia. In 2011, New Zealand’s food and beverage exports totalled US$468.3 million, making Indonesia New Zealand’s 11th largest export destination.i In November 2011, Indonesia provided formal notification of the completion of its internal ratification procedures to enable the ASEAN – Australia – New Zealand Free Trade Agreement (AANZFTA). From 10 January 2012, AANZFTA will open up considerable opportunities for New Zealand businesses. The agreement will allow duty / tariff free access to over 90 percent of New Zealand goods and services by 2015.ii…

    • 3895 Words
    • 16 Pages
    Powerful Essays
  • Satisfactory Essays

    Indonesia in meeting their needs is very dependent on international business activities. Many domestic needs must be imported by Indonesia. Indonesia is currently implementing an open economic system opens a huge opportunity for foreign investors to do business in Indonesia and Indonesia. International business activities have a strong influence on Indonesia's economy. Indonesia has abundant natural resources, but Indonesia does not have the human resources and capital strength to manage natural resources, Indonesia is therefore in dire need of foreign workers and foreign capital to manage natural resources are abundant.…

    • 467 Words
    • 2 Pages
    Satisfactory Essays

Related Topics