A Glimpse Into the Business Culture of Indonesia

As the country’s economy develops, more and more foreign investors and companies will look into Indonesia to expand their investments and enterprises. If you also are a foreign business owner waiting to complete company incorporation in Indonesia, you need an overview of the ins and outs of doing business in Indonesia.

Here is a glimpse into the business culture in Indonesia.

Understanding the Business Culture in Indonesia

Indonesia’s business culture is diverse and has rich cultural dynamics. By understanding these dynamics, you increase your chances of successfully dealing business with both local and other foreign partners and associates. Below, we unveil the usual practices of doing business in Indonesia.


When going to business meetings, always arrive on or earlier than the specified time. However, give consideration when your Indonesian counterpart arrives late to the meeting. Try to be flexible on your time planning to make an allowance if this does happen. When greeting the parties of the meeting, do so individually with a handshake. It is preferable to do this in the order of oldest to youngest.

Further, always be on proper behaviour in a formal business meeting. Indonesians usually take an unaggressive approach to business but view boisterous behaviour negatively. They would generally speak slowly with little emotional weight, so try to mimic this same style of communication. It is ideal to show compassion and be personable. Additionally, avoid being confrontational or letting your emotions get in the way of negotiations.

Power Hierarchy

The hierarchy dynamics in Indonesia is similar to that of other Asian countries. Here, there’s a high power distance which means that people view social ranks as very important. This perception is the same inside the organization. This mindset is commonly found in older generations and well-established companies.

Importance of Connections

When doing business in Indonesia, who you know is more important than what you know. This means that getting good connections will help you more than knowledge. This is especially true in dealing with the government sector. Therefore, it is wise to partner with individuals with a wide circle of connections when starting a business here.

Register Business in Indonesia

Learning the dynamics of the workplace in Indonesia will help you manage the business and lead your people to success. Are you more confident now to invest in a business in the country? You can contact our professionals in 3E Accounting Indonesia today to know how and where to register a company in Indonesia. Avail of our services and start your business on the right grounds.