Editor’s Note:
This article is based on George B. Whitfield III’s original work on Indonesian business culture. It has been updated to reflect today’s business environment while preserving the author’s original concepts and practical insights for modern expatriate managers.
This is the last of three articles focusing on what George Whitfield called the Indonesian Big Five Cultural Values. The first discussed loyalty to hierarchical structures of authority. The second examined conflict avoidance and being “subjugated to nature.” This final article explores two additional cultural values that continue to influence many Indonesian workplaces today: saving face and perceptions of time.
Face and Social Harmony
Most international managers working in Asia quickly learn one important lesson: avoid causing someone to “lose face.”
This advice remains highly relevant in Indonesia.
Maintaining dignity, respect, and harmonious relationships often takes priority over proving who is right. Employees generally want to feel respected by their managers and colleagues, and leaders are expected to protect the well-being and reputation of their teams.
One practical implication is that criticism should almost always be delivered privately. Public correction can unintentionally embarrass an employee, making it much more difficult to rebuild trust and motivation afterward.
Although coworkers may already know that a mistake occurred, discussing the issue behind closed doors allows everyone to preserve workplace harmony and continue working together without unnecessary embarrassment.
For many expatriate managers, this can require a significant adjustment. In cultures where direct feedback is viewed as honest and constructive, correcting someone publicly may seem perfectly acceptable. In Indonesia, however, preserving the relationship is often considered just as important as solving the problem.
Giving Feedback Effectively
This does not mean Indonesian employees cannot accept constructive feedback.
Rather, feedback is usually most effective when it is:
- Delivered privately.
- Respectful and calm.
- Focused on improvement rather than blame.
- Balanced with encouragement and recognition.
Many experienced foreign managers discover that they achieve better long-term results by coaching employees rather than confronting them publicly.
Performance reviews can also present challenges. If managers save concerns until an annual appraisal, employees may feel surprised because they believed earlier issues had already been resolved. More frequent coaching conversations throughout the year often produce better results than relying solely on formal annual evaluations.
Recognition and Motivation
Status and recognition can be powerful motivators in Indonesia.
Promotions often carry greater meaning when they include visible signs of increased responsibility, such as a new title, broader authority, or greater decision-making responsibility. Recognition from respected leaders may also be highly valued.
Financial rewards certainly matter, but many employees are equally motivated by opportunities to build professional reputation, earn trust, and gain respect within the organization.
As with every culture, individual personalities and organizational culture play significant roles, particularly within multinational companies where performance-based systems are more common.
Persepsi Waktu (Perception of Time)
Another of Whitfield’s cultural values is Persepsi Waktu, or the perception of time.
Perhaps no difference surprises expatriate managers more than the contrast between the Western emphasis on future planning and the more flexible approach often found in Indonesia.
Western business cultures frequently emphasize:
- detailed planning,
- strict schedules,
- measurable deadlines,
- preventive maintenance,
- long-term forecasting.
Traditional Indonesian culture has often placed greater emphasis on flexibility, adapting to changing circumstances, and allowing events to unfold rather than attempting to control every variable.
Today, Indonesia’s modern corporate environment has become much more deadline-driven than when this article was originally written. Multinational corporations, government agencies, manufacturing firms, and technology companies all operate with increasingly sophisticated project management systems.
Nevertheless, expatriates may still notice that relationships, consensus-building, and flexibility sometimes take precedence over rigid adherence to schedules.
Quality and Long-Term Thinking
Whitfield originally observed that immediate functionality was sometimes valued over long-term durability.
While quality standards have improved dramatically across many industries, foreign managers may still encounter situations where work is considered complete because it functions today, even though additional improvements could reduce future maintenance or improve long-term reliability.
Helping employees understand why preventive maintenance, documentation, or higher quality standards matter often produces better results than simply insisting on different procedures.
Safety
Safety culture has also improved considerably in Indonesia over the past two decades, particularly in multinational companies and heavily regulated industries.
However, managers may still encounter differences in attitudes toward risk.
In many organizations, visible or immediate dangers naturally receive the greatest attention, while preventing possible future risks may require additional explanation, training, and reinforcement.
Building a strong safety culture often involves helping employees understand not only what procedures are required, but why they matter.
Process versus Outcome
Traditional Indonesian workplaces have often emphasized following accepted procedures and maintaining harmonious relationships throughout the process.
Western organizations may place greater emphasis on measurable outcomes, deadlines, and individual accountability.
Neither approach is inherently better. Successful international managers learn to combine Indonesia’s strengths in relationship-building and teamwork with clear expectations regarding deadlines, quality, and accountability.
Final Thoughts
Any attempt to summarize an entire nation’s culture inevitably involves broad generalizations. Indonesia is one of the world’s most culturally diverse countries, and workplaces differ greatly between family businesses, government institutions, local companies, and multinational corporations.
Likewise, younger professionals, internationally educated employees, and globally connected organizations may display working styles that differ significantly from traditional cultural norms.
The purpose of understanding cultural values is not to place people into stereotypes, but to recognize patterns that help build stronger relationships, communicate more effectively, and become better leaders.
Just as Indonesian professionals may find Western values such as direct confrontation, individualism, or rigid scheduling unusual, expatriate managers may encounter different expectations regarding hierarchy, harmony, communication, and time. Success comes not from judging these differences, but from learning how to work effectively across them.
This article was originally contributed by George B. Whitfield III during his time as a Technical Advisor with Executive Orientation Services.
