Editor’s Note:
While Indonesia has become more globalized and digitally connected, the core message of this article remains highly relevant. Relationships, trust, respect, patience, and long-term commitment continue to be important factors in successful business dealings throughout Indonesia. The exact expression of these values may vary across industries, generations, regions, and organizations, but understanding their importance remains a valuable advantage for foreign professionals.
Business travelers gathering in Jakarta’s hotels often share stories about the challenges and opportunities of working in Indonesia. During one such conversation, I overheard the following exchange between two foreign businessmen.
John Thomas of Perth began, “I just don’t understand it. This deal had everything going for it. It provided the same quality of material for the building project at a lower cost. He should have grabbed it. In fact, I would have thought he’d be required to take the lowest offer on comparable goods.”
Townsend Simely of Liverpool asked, “How did you present your proposal?”
John replied, “I emailed all of the product specifications and cost breakdowns, then flew in to present the offer and sign the deal. I don’t really have time to spend sitting here in Jakarta. In this age of telecommunications and globalization, I shouldn’t even have to come here, much less open an office.”
Townsend considered that for a moment.
Today, many Western businesspeople operate with a “time is money” mentality where efficiency, price, and measurable results are often viewed as the most important factors in decision-making. While Indonesia has become significantly more globalized and digitally connected over the past two decades, personal relationships still play a critical role in business success.
When we talk about doing business in Indonesia, we are often talking about opening and maintaining relationships.
Why Relationships Matter
Any experienced international businessperson has heard about the importance of relationships in Asia. In Indonesia, relationships continue to be one of the most important foundations of business.
Historically, Indonesian society has emphasized networks of family, community, mutual obligations, and long-term trust. While modern Indonesia is highly diverse and includes many different cultural influences, these relationship-based values continue to influence how business is conducted.
In many cases, Indonesian executives prefer to do business with people they know, trust, and feel comfortable working with over the long term. Price and technical specifications matter, but trust often determines whether discussions move forward.
For many Indonesians, signing a contract does not signal the end of negotiations. Instead, it often marks the beginning of an ongoing business relationship.
Never Write When You Can Call, Never Call When You Can Meet
Townsend Simely had been transferred from England to Indonesia more than eight years earlier. Well educated and culturally astute, he had become successful in protecting and expanding his company’s interests.
There are two basic rules he follows when developing Indonesian business contacts.
Rule #1: Keep It Personal
Never write when you can call, and never call when you can meet.
Emails, WhatsApp messages, and video conferences are now an accepted part of doing business in Indonesia. However, important business discussions, negotiations, and relationship-building activities are still often more effective when conducted face-to-face.
Written communication works best when it confirms something that has already been discussed personally.
When meeting Indonesian counterparts, allow time for conversation before immediately discussing business matters. Topics such as family, education, travel, food, hobbies, or recent events are often used to establish rapport.
Many Westerners view such discussions as unrelated to business. Indonesians often see them as an important step toward building trust.
If it is a first meeting, spend time getting to know one another. In future meetings, remember details from earlier conversations and ask follow-up questions. Demonstrating genuine interest in people helps strengthen professional relationships.
Rule #2: Keep It Polite
This is perhaps the most important principle in maintaining successful Indonesian business relationships.
Public displays of anger, confrontation, or harsh criticism rarely produce positive results.
Many Indonesians place a high value on maintaining harmony and avoiding embarrassment. Direct criticism—especially in front of others—can damage relationships and make future cooperation more difficult.
This concept is often referred to as saving face, though it is not unique to Indonesia.
While business practices vary widely across the archipelago, maintaining an outward sense of calm and professionalism is generally appreciated.
If a meeting becomes difficult, resist the urge to become confrontational. Instead:
- Remain calm.
- Ask questions.
- Listen carefully.
- Seek clarification privately if needed.
- Focus on preserving the relationship while addressing the issue.
As Townsend advises:
“If you run into an unexpected problem in a meeting, keep smiling, step back, and try to understand what is really happening.”
The issue may involve internal approvals, concerns from senior management, government regulations, budget changes, or other factors that are not immediately visible.
Patience often reveals information that frustration never will.
Indonesia in the Digital Age
Indonesia’s business environment has changed dramatically since this article was first written.
Video calls, remote teams, digital contracts, online procurement systems, and instant messaging have become commonplace. Business decisions are often made more quickly than they were twenty years ago.
Yet one thing remains surprisingly consistent:
Trust still accelerates business.
While technology can help introduce people, relationships often determine whether opportunities move forward.
Foreign companies that succeed in Indonesia typically invest time in:
- Regular visits and personal contact.
- Building local networks.
- Understanding cultural expectations.
- Demonstrating long-term commitment.
- Maintaining relationships even when no immediate business opportunity exists.
Indonesian partners often look for signs that a company intends to be present for the long term rather than simply pursuing a quick transaction.
Commitment Matters
To do business effectively, Indonesian contacts need to feel that they are in a relationship with you and your organization.
An occasional visit from a regional office may not be enough to establish the level of trust required for significant business partnerships.
Whether through a local office, a trusted representative, regular visits, or consistent engagement, successful companies demonstrate commitment to the Indonesian market.
Finally, Townsend looked at John Thomas and said:
“I have seen it time and time again. Foreigners come to Indonesia with what they think is a great idea and expect immediate results. You have two choices. You can commit to Indonesia, build relationships, and grow alongside the market, or you can continue knocking on doors and wonder why they don’t open.”
John looked at Townsend, muttered, “I don’t have time for this,” and ordered another beer.
This article was generously contributed by George B. Whitfield III during his time as a Technical Advisor with Executive Orientation Services.
By George B. Whitfield III
