When conducting business in Indonesia, understanding local etiquette is essential for building strong professional relationships and ensuring business success. Indonesia is a diverse country with a rich cultural heritage, where personal relationships and respect for hierarchy play a significant role in the workplace. Unlike Western business environments that prioritize direct communication and efficiency, Indonesian business culture places a high value on harmony, patience, and subtlety.
Hierarchy and Respect
Indonesian workplaces operate within a structured hierarchy, and it is crucial to show deference to those in higher positions. Decision-making is often top-down, and junior employees may be hesitant to challenge or contradict their superiors openly. If feedback is required, the superior will often need to request it or explicitly invite the subordinate to share their opinion. Even when such an invitation is extended, an honest opinion may not be shared initially; instead, the employee may provide a response they believe the boss wants to hear. This reflects the concept of “Asal Bapak Senang” (“as long as the boss is happy”), which influences workplace dynamics.
Additionally, if an Indonesian professional outranks an expatriate in position, the expat is expected to “know their place” and show the utmost respect to the VIP Indonesian. Failing to do so can create significant problems, as the expatriate may be perceived as disrespectful, which can damage future business relationships. Recognizing and adhering to these hierarchical expectations is essential for maintaining smooth professional interactions in Indonesia.
The Role of Personal Relationships
Business in Indonesia is built on trust and relationships rather than purely on contracts and transactions. Establishing rapport with business partners and colleagues is an integral part of negotiations. Small talk and informal gatherings are often used to strengthen professional connections. Foreigners who focus solely on the business agenda without investing time in relationship-building may find it challenging to gain trust and cooperation from their Indonesian counterparts. It is important to prioritize building the relationship first before pushing ahead with the task of business. Many expats want to skip the relationship-building portion due to deadlines or limited time in the country. This is a mistake. Until Indonesians truly understand and feel comfortable with the expat, it will be challenging to have their full support. Once trust is established and the team is comfortable with the expat, genuine support will be given by the team.
Common Cultural Misunderstandings That Cause Friction
Direct vs. Indirect Communication
One of the most significant differences between Western and Indonesian business cultures is communication style. Westerners often value directness and efficiency, preferring clear, concise discussions that get straight to the point. Indonesians, on the other hand, tend to use indirect communication to maintain harmony and avoid confrontation. A “yes” in an Indonesian office does not always mean agreement; rather, it may be a polite way to acknowledge a conversation without outright rejection. If the expat continues to use a direct approach, they may be considered rude. The ability to separate business and relationships is a Western concept that does not exist in Indonesia. Business is personal, so a comment made about someone’s work will most likely be taken personally. Of course, there will be a need for corrections and criticism in the Indonesian workplace, but the approach must be very “politically correct” rather than a frank statement. Offering to mentor the correction or complimenting what was good about the situation before pointing out what needs to be improved is a strategy that works well in the Indonesian office.
The Concept of Time
In many Western cultures, punctuality is a sign of professionalism and respect for others’ time. To be late in a Western office would be considered rude, and the person you are meeting may be upset at your tardiness. In Indonesia, where a much more relaxed approach is taken, most people will expect the meeting to start late. That is not to say that Indonesians cannot be on time. In fact, they can, however, it is not the norm. If a foreigner needs and requests that meetings within the office start on time, for the most part, the staff will comply out of respect for their position. However, this compliance will not continue outside of the office, and should you have outside meetings or appointments, most likely, they will be late. Hierarchy also plays into this, as the higher the ranking of the official, the more leeway they feel they have to come late to a meeting. They will expect that the less important attendees should be waiting for them, and once they have arrived, then they will join and commence the meeting. This is not meant to be disrespectful, rather, it is normal business behavior in Indonesia.
Business Meetings and Negotiations
Negotiations in Indonesia are often slow-paced, as decisions are rarely made on the spot. Unlike Western deal-making, which tends to be straightforward, Indonesians prefer to take their time to consider all aspects before committing. Additionally, decision-making is typically consensus-driven, requiring input from multiple stakeholders. In some cases, the lack of ownership for the problem may stop the person from making a decision before they speak to colleagues. The opinions of colleagues may sway the final decision, as it would be safer to agree with the popular consensus rather than go against the majority and commit to their own opinion. Talking to others may take time, and therefore an immediate decision may not be possible. Also, in most cases, decision-makers do not like to be pressured into making a decision. Knowing this, it is important to plan well, and if a decision is needed, make sure that it is not left to the last minute.
Body Language and Gestures
Understanding Indonesian body language is crucial for avoiding unintended offense. For example, pointing with the index finger is considered impolite; instead, Indonesians use an open hand to indicate direction. Likewise, touching someone’s head—even playfully—is a cultural taboo, as the head is regarded as the most sacred part of the body. Many Western gestures, such as placing hands on hips or crossing arms, can also be perceived as aggressive or confrontational in an Indonesian setting.
How Cultural Training Enhances Workplace Relationships
Gaining Insight into Local Expectations
Cultural training provides foreign business professionals with valuable insights into Indonesian workplace norms, helping them navigate social and professional interactions more effectively. Many expats may not realize that they are making mistakes. The polite Indonesian stays quiet rather than pointing out the mistake, and therefore the behavior continues. Understanding the local culture and showing interest will help with the relationship-building of the team. Almost never is the success of the assignment based solely on the work of the expat alone. In most cases, it will depend on the success of the team you are working with. By taking a cultural training course, you can gain insight into common issues before you make the mistake in the workplace. The training can fast forward you into an understanding of local expectations or give you valuable insight into what you should not be doing, thus avoiding a problem before it can begin.
Strengthening Team Cohesion
Multinational teams often experience friction due to differing work styles and expectations. Cultural training helps bridge these gaps by fostering mutual understanding and appreciation. An expat may not understand where the gaps in culture are. Often, the expat may not even be aware that there are differences in culture until an issue arises. Especially in an indirect culture like Indonesia, there are a lot of hidden meanings and sources of friction that a newcomer does not understand. By taking a cultural training, the expat can understand the situation from the Indonesian point of view and adjust their approach based on that. Without understanding the Indonesian perspective or mindset, the solutions that the expat is incorporating may not be the best choices. The time spent in a training can be invaluable on the job site. When expatriates demonstrate cultural sensitivity, local employees feel more comfortable, leading to improved morale and productivity.
Accelerating Business Success
Often, a newcomer does not know what they don’t know. By taking a cultural training course, expatriates can fast-track their understanding of the Indonesian point of view, the reasons behind some of the actions they observe, the methods that can help encourage change, and the values that can help motivate a team. Without this type of specific information, the expat is making decisions based on assumptions that could be entirely wrong. Cultural training should be a must for any relocating expat. If the company is not willing to supply it, the expat should seek it out to ensure that their posting in Indonesia can be as successful as possible. By gaining a deeper understanding of cultural nuances, companies that invest in cultural training for their expatriate employees often see smoother operations, reduced conflict, and greater collaboration between international and local teams.
Conclusion
Business success in Indonesia depends on more than just expertise and strategy—it requires cultural awareness and adaptability. Without proper training, you are stabbing in the dark and hoping your approach is correct. Culture is not a one-size-fits-all, and expats in Indonesia need to realize that the sooner they have an understanding of the local culture, the easier their job will become. If you would like to understand more about how cultural training can help you or your employees, please contact us, and we can discuss the options that we can provide to make your posting in Indonesia a great success.
