If you are a foreigner who intends to pursue new company setup in Indonesia, you should know that absorbing the local culture is necessary. The locals will expect you to be open to their unwritten rules regarding the way they live. This is because Indonesians are very proud of their culture and wish this to be respected by foreigners.
Get to Know the Local Business People Well
Knowing the local culture is part of the formation of a business relationship with local business people. You gain trust if you show an effort adjusting to Indonesia local culture, especially with regards to business relationships.
Be Aware of Social Status
Locals are understandably very conscious of their social status. This influences the harmony of the business community. When you are looking forward to incorporating Indonesia company you should know “who’s who” in the local business scene. You do have to transact only with “power holders” who make the final decisions in business in Indonesia.
If you are not aware about who are the power holders, you may have to befriend a local who does know. This Indonesian citizen or long-time resident will instruct you on what are the unwritten rules when interacting with people. You just have to follow their lead, especially during certain events that are important to the local community. Some business people make crucial business decisions not just in the office, but also in casual events.
Understand Local Lingo
You should get familiar with one crucial aspect of Indonesian business culture. This is that a “yes” does not automatically translate to a definite agreement. Sometimes, a local business person may say “yes” but this is actually considered more of a “maybe”. One key phrase to look out for is “yes, boss”. If a local engages with your company, it pays to be clear about what you are after to avoid miscommunication.
This means being sensitive about the nuances of business interaction. Sometimes, foreigners are not aware of these so problems result.
If you want assistance when attempting to set up a company, Accounting Indonesia is ready to help. We also offer other business services to foreign investors that may help your business get established in Indonesia.
