Editor’s Note:
This article reflects the observations and professional experience of the author working with cross-cultural teams in Indonesia. While the core cultural insights remain highly relevant, workplace dynamics in Indonesia continue to evolve. Readers are encouraged to interpret these perspectives as general guidance and adapt them to their specific organizational context.
Globalization has long been a defining feature of international business. As international markets continue to integrate, developing economies are increasingly shaped by global business practices and expectations. Indonesia, while maintaining its own cultural identity, remains open to international investment and enterprise.
Multi-national companies often post senior executives to Indonesia who have a highly developed global outlook. Such managers, with a generalist perspective toward international business, may overlook the necessity of developing a local understanding in their host country. Indonesia is one of those environments where the home office perspective of corporate priorities may not always serve as the most effective approach toward productivity and long-term success.
In today’s environment, this challenge is even more pronounced, as many teams operate across borders, time zones, and digital platforms. What works in a regional headquarters or global office does not always translate effectively on the ground in Indonesia.
Indonesian managers typically place strong emphasis on harmony, mutual respect, and maintaining positive working relationships. In some situations, these priorities may take precedence over direct confrontation or strict performance enforcement.
Successful expatriate managers in Indonesia understand that issues of importance to the majority of their staff are not lightly ignored. These perspectives must at least be understood by an expatriate executive in order to be effective in their posting. In many cases, they must be incorporated into what is often referred to as a “third corporate culture” established locally. This allows the company to remain productive, successful, and aligned with the bottom line goals of the home office, while still functioning effectively in Indonesia.
This “third culture” approach remains one of the most effective strategies for multinational organizations operating in Indonesia today. It blends global standards with local expectations in a way that allows both sides to function effectively.
One of the benefits of having all cultural sides of an office or organization take the time to sit down and discuss their expectations in a facilitated manner is a greater understanding of the cultural barriers present within that organization. This understanding leads to the development of a working culture that may not be effective or even accepted in the corporate home country, but one that functions well in Indonesia. In modern organizations, this type of dialogue may take place through structured workshops, leadership sessions, or facilitated cross-cultural training, either in person or virtually.
All cultural sides must make the effort to understand, of course, but in this column the emphasis is on the expectations of many senior Indonesian managers.
Below are some actual comments made by Indonesian managers during a cross-cultural team building program. These comments arose during separate orientation sessions and were identified as areas of concern worthy of discussion with their Western counterparts.
- Westerners should make an effort to learn and implement the culture, taboos, and language of their Indonesian colleagues.
- Westerners should avoid the use of strong or rude language which could set a bad example for the workers.
- Westerners should not assume that Indonesians can follow or fully understand their discourse. Instructions should be clear, delivered at an appropriate pace, and repeated where necessary, while avoiding slang.
- Westerners should have a willingness to bend or make exceptions to policy, without altering core standards, for individual cases and cultural needs, such as time off for religious or family obligations.
These observations remain highly relevant today, although many younger Indonesian professionals are increasingly comfortable with more direct communication styles. Even so, sensitivity to tone and respect continues to play a critical role in workplace relationships.
These points can be condensed into a few general areas: cultural awareness, politeness, proper communication, and understanding. Expatriate managers need to be aware that actions and decisions in these areas that appear insensitive or arbitrary to Indonesian staff can lead to resentment more quickly and more deeply than in other aspects of the working relationship.
Indonesian managers can be expected to make many adjustments when working in an international company. Scheduling and deadlines, punctuality, giving difficult feedback, and taking responsibility are areas where many Indonesian professionals recognize the importance of aligning with international business practices. However, when companies need to establish policies related to religious practices, such as prayer times, careful consideration is required in how these policies are communicated and implemented.
With the widespread use of messaging platforms such as WhatsApp and email, clarity of communication has become even more important. Indirect responses or silence may still indicate hesitation or disagreement, even if this is not explicitly stated.
Sensitivity to the needs of employees is an area that has traditionally received less emphasis in some Western business cultures, where efficiency and productivity often take priority. In Indonesia, however, this sensitivity plays a central role in building trust and maintaining effective working relationships.
For expatriate managers to be successful in Indonesia, it is important to incorporate into their management style a visible demonstration of care and understanding toward the cultural values of their Indonesian colleagues. In practice, this often means taking the time to listen carefully, responding calmly to challenges, and demonstrating respect in both words and actions. These behaviours are essential in building trust, which is the foundation of long-term success in Indonesia.
Frequently Asked Questions: Working Across Cultures in Indonesia
Why do Indonesian employees sometimes say “yes” but not follow through?
In Indonesian culture, maintaining harmony is often more important than direct disagreement. Saying “yes” may reflect politeness rather than full agreement or understanding.
How should expatriate managers communicate with Indonesian staff?
Clear, simple, and respectful communication works best. Avoid slang, confirm understanding, and create an environment where staff feel comfortable asking questions.
Is indirect communication still common in Indonesia today?
Yes. Although younger professionals may be more direct, indirect communication remains an important cultural norm, especially in hierarchical environments.
What is meant by a “third culture” in business?
It refers to a working culture that blends international business practices with local Indonesian expectations, creating a system that works effectively for both sides.
This article was generously contributed by George B. Whitfield III during his time as a Technical Advisor with Executive Orientation Services.
