Name : Farida Faradila Baswedan

Npm : 1810211657
Class : SM7

ESSAY BUSINESS CULTURE IN INDONESIA

Indonesia is a country rich with cultures of various tribes throughout its territory. Even in the
business world, there are unwritten habits that are done in descending decline and eventually
become a culture business itself. Understanding your existing business culture will make it easier
for someone to socialize in business, as well as reference material for businessmen when
establishing relationships.

Indonesia is a country that has various cultures. This culture diversity occurs because
Indonesia country consists of hundreds of islands where each island has its own culture.
Indonesian standard business culture is quite different. First of all, it should be understood that
there is no single Indonesian culture. Indonesia with its 17,000 islands and hundreds of different
ethnic groups is a vast collection of different peoples and cultures. However, Javanese culture
has long dominated the archipelago and is the standard for Indonesian business culture today.

Indonesians generally believe that people are a mixture of good and evil. People are usually
good especially when constrained by responsibilities to the group. However, there is the potential
for evil in all people. Normally constrained individuals can perform irrational acts believed to be
outside that person’s control.

Indonesia is not the easiest country to set up a new company or to play an active role in
business. This situation is reflected in the 2018 Doing Business index report published by the
World Bank. In the report, Indonesia is currently in position 72. One of the biggest problems in
establishing a new company in Indonesia is getting all the necessary permits. The licensing
process can be time-consuming and expensive. In order to successfully develop business in
Indonesia, it is very important to build a good network with business and government circles.
Foreign entrepreneurs must be aware of the interests of this network and strive to develop it.

Currently Indonesian culture is in danger of being lost because eroded by the times. There are
so many factor that make Indonesia’s culture is in danger. Those factors are from inside and
outside. Here are two paragraphs that discussing those factors that cause the endangerment of
native Indonesian culture:

1) The first is factor from inside. The decreasing of Indonesia’s culture existence in its own
home is caused by its own people that ignore their culture especially for teenagers. They are
lulled by modern life and started to forget the values which is inherited by their ancestors.
 For example, local languages, cultural ceremony, customs and Indonesian traditions have been
lost in society. Now, we could see no one wants to use local language because they are
embarrassed of using local languages. Besides the teenagers who do not care anymore with the
culture, government also less responsive in dealing with this problem. There is no real attempt
from government to sustain Indonesians culture.
2) The second is external factors. The Rapid flow of information which comes to Indonesia
also effects the erosion of Indonesian culture. Many foreign cultures, especially Western
cultures have come and grew in Indonesia. Those western cultures are incompatible with the
Indonesians values as eastern nations. It also gives bad effect in Indonesian’s norm as eastern
nation. Nowadays, we can see the fashions of clothing that does not conform to the norms,
habits drunk, and poor lifestyle has grown in Indonesia.
The reduction of Indonesian culture existence in his own country as a result of several
factors. They are inside and outside factors. For maintaining the continuity of Indonesia’s
Culture, let us keep our own culture. Especially we as young people do not feel embarrassed to
preserve our culture and also stem western cultures which come into our country. If we have lost
our original culture means we have lost our own national identity.

Business culture in Indonesia is very concerned about how to build a network by socializing
properly. The following are elements that become a business culture in Indonesia :

1. Has a Hierarchy System

Business culture in Indonesia has a hierarchical system that is visible from most of its
business environment. Where, those in higher positions will be called “mr or ma’am” and
followed by their names. This is to show respect for those who have a higher position.
Meanwhile, people who have lower positions should be able to follow the requests of people
with high positions without a question. This is because most employees or workers in
Indonesia prefer to remain silent rather than having to correct their superiors, even if they make
mistakes. This is done because they do not want to experience confrontational positions and
conditions that can cause interference or problems at work. Because, a comfortable workplace
is everything for Indonesians.

2. Takes a Long Time for Negotiations

Most Indonesians need more time in making business deals. Sometimes, they also need a lot
of meetings to discuss the issues they want to agree on. Because Indonesians think of
everything carefully and wait for the right time to decide on something. And if their business
partners put pressure on them and ask them to decide quickly, Indonesians will feel it is a sign
of danger. Some Indonesians will also ask others for advice before making a deal in
negotiations.
 3. Meeting Time Is Often Backwards
The meeting will be better if it is carried out in a timely manner. However, some Indonesians
often arrive late when they have an appointment. Because most Indonesians feel that they have
a flexible time. Not to mention the traffic conditions, especially living in the capital city which
is almost daily jammed and hampered the trip to the meeting place. Indonesian business culture
will also usually tolerate people with high positions coming late, but does not apply to people
with lower positions. This is an undisciplined behavior of time for meetings that have been
determined.

4. Rules for Entering the Meeting Room

Business culture in Indonesia also has unwritten rules when it comes to entering a meeting
room. Where the person with the highest position must enter the meeting room first, and then
the other employees follow. This is seen as a way to respect superiors or people in higher
positions.

5. Agreement Is Important
For Indonesians, agreement is an important thing to do. Where, all decisions and steps to be
taken must be based on an agreement and have been agreed by all stakeholders, even though
the solution taken is not the best solution. Because, the most important thing is that the solution
has been approved by everyone. In addition, Indonesians also respect senior opinions more and
follow up on what seniors have said because they think that seniors know more about things
and have more experience.

6. Business Appearances
Appearance is the number one thing that can show how professional they are in business. For
this reason, many Indonesian companies require their employees to dress formally. However,
female employees or workers are expected to dress appropriately and show humility that is an
Indonesian cultural value. There are also several companies that provide uniforms that must be
used by employees.

7. Distributing Business Cards

Indonesians will usually exchange business cards before starting meetings or meetings to
connect with other business partners. Indonesian culture when receiving cards is also very
much considered, where the way to receive them must use the right hand, because receiving
with the left hand is considered impolite.
 In some areas of Indonesia, the local wisdom is increasingly fading away by global values.
Although the global value does not necessarily correspond to the condition of the people of
Indonesia, but it seems that among the young values is no longer an idol. On this matter from the
point of view of the business economy is important.
More importantly, however, is how socializing those values in the young generation so as not
to disappear swallowed global values. This is because although many companies have been go
global but still hold the principle of "Think Globally, Act locally sourced". Thinking globally,
acting according to local values is a philosophy embraced by multinational corporations. To be
able to act locally, the understanding of local wisdom becomes very important in the business
world.

Conclusion
That is some Indonesian business culture. But not all Indonesians have that business culture,
because everything goes back to the person himself. Indonesians usually prioritize politeness and
politeness in business. And most of the people of Indonesia will appreciate work relationships,
not just take business profits.
The differences between Western cultural styles and Indonesian cultural norms become very
apparent in the business environment. Most Western cultures believe that humanity is basically
good. Most Western cultures believe that the human-nature relationship is one of Mastery over
Nature meaning that if nature gets in the way you change it. Most Western cultures have a very
strong future-time sense with the belief that planning and scheduling today make it possible to
succeed tomorrow. Finally, most Western cultures have a strong belief in individualism and
equal rights meaning that if you work hard, you will be rewarded.

Reference
https://www.jurnal.id/id/blog/2018-10-fakta-tentang-budaya-bisnis-di-indonesia/