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Group : Lucky7 Felicia Gojali

Hajime Kato

Kenichi Yamasaki

Sakshi Chawla

Thanat TengAmnuay

INDONESIA

Cross-Cultural Management

Country Culture Spotlight

Agenda

• Introduction

• Cultural Overview

• Communication Style

• Business environment

• Business Etiquette

• Summary

• http://www.youtube.com/watch?v=sj6fqxPWEo0

• 90 seconds

Introduction Video

Introduction

Religion Group Ethnic Group

Around 490!!

Javanese is majority

Muslim is majority

The biggest number of

Muslim in one country

• 740 Languages (Indonesian)

• Rainy and Dry Seasons

4th

Introduction

• Area : 1,904,569km^2(15th) • More than 17,000 islands

Geographical Features

• 3 time zones • 5 main islands

Capital: Jakarta

10M population Metropolis Heavy traffic Jam!!

Traditional Cloth: Batik

Batik is a method of dyeing cloth and of making it resistant using wax

Food: Nasi Goreng

Literally meaning "fried rice" in Indonesian

Fried rice, cooking oil, spiced with kecap manis (sweet soy sauce),

shallot, garlic, tamarind and chilli and accompanied with other

ingredients, particularly egg, chicken and prawns.

Transportation

Angkot Bus without bus stop

Ojek Motorcycle taxi

Fare needs negotiation in advance

Fast Food

FUN FACTS

• What is the common menu between

McDonald's, KFC, Burger King, and

Wendy's in Indonesia?

A. Chicken Burger B. Fish & Chips C. Chicken & Rice D. Caesar Salad

Fast Food

FUN FACTS

• Answer is C : Every fast food stores

sell Chicken with rice

Cultural Overview

5 Indonesian core cultural values

• Family and hierarchical structure • Conflict avoidance • Subjugation to nature • Saving face • Relaxed time perspective

Cultural Overview

Hofstede’s Cultural Dimensions

0

20

40

60

80

100

120

Indonesia

India

Japan

Cultural Overview

Hofstede’s Cultural Dimensions

Large Power Distance

Collectivism

Low Masculine

Medium Low Uncertainty Avoidance

Short Term Oriented

Cultural Overview

Large power distance

• Hierarchical structure • Respect to elder’s wisdoms

Salim is the proper handshake to respect superior person.

mile.mmu.edu.my

Cultural Overview

Large power distance

• Hierarchical structure • Respect to elder’s wisdoms

Ritualized sungkem often performed in wedding, bride giving respect to groom. And both of them giving respect to their parents.

www.demokrat.or.id

Cultural Overview

Collectivism society

• Gotong Royong (joint bearing of burdens) • Extended-Family

http://one-tour.yuman.fr/2013/11/the-gotong-royong-spirit-bali/

It is common for Indonesian to help community and neighbors with public works.

Cultural Overview

Collectivism society

• Gotong Royong (joint bearing of burdens) • Extended-Family

Family is the most important in Indonesia. Most of them are extended-families.

www.jasongraham.org

Cultural Overview

Femininity society

• Family matter

www.globalindonesianvoices.com

Cultural Overview

Medium-Low Uncertainty Avoidance

• Asal bapak senang (Keep the Boss Happy) • Musyawarah (Consensus decision making)

ikhwanabdillah.wordpress.com

Indonesian try to avoid risk of losing job by trying to keep the boss happy.

Cultural Overview

Medium-Low Uncertainty Avoidance

• Asal bapak senang (Keep the Boss Happy) • Musyawarah (Consensus decision making)

mgbkmalang.wordpress.com

In decision making process, Indonesian will ask for everyone’s opinions and try to find the best solution that everyone hapy.

Cultural Overview

Short-term Oriented Society

• Saving Face • Conflict avoidance

www.indo5.net

Concept of Saving Face is to avoid embarrassing others in the public.

• current units (rupiah)

• after redenomination

Redenomination

FUN FACTS

• How many digit will be deduct

from Redenomination?

A 0

B 00

C 000

D 0000

Redenomination

FUN FACTS

• current units (rupiah)

• after redenomination

10,000

10

• Answer is C: 3 Zeroes will be

deducted

• Conversation

- Common questions

Communication Style

• http://www.youtube.com/watch?v=UILVV06Zcdo

• 30 seconds

• Personal Space and Social Space

- Friends and Family : 60 – 120 cm ( 2 – 4 feet)

- Business associates : 120 – 300 cm ( 4 – 10 feet)

• Eye Contact

- Direct eye contact should be avoided in general

Communication Style

• Display

- Indonesians are good at hiding their emotions

- Indonesians prefer indirect expressions

Communication Style

Belum.

Tidak senang.

Lebih baik tidak.

Tidak boleh.

Tidak terima.

Maaf tidak.

Jangan.

Nanti kali lain saja.

Kapan-kapan, deh.

Bukan.

Enggak.

Tidak.

Terima kasih.

Tidak usah.

Tidak mau.

• Things to talk about

- Indonesian value family highly

Communication Style

• Gestures to avoid

Communication Style

- Never give or receive something by the left hand

- Don’t put your hands on your hips while talking

- Do not touch someone especially among opposite gender

Rice Consumption

FUN FACTS

• What is the Indonesian rice consumption per person per year? (Kg)

A B C D

139

100

63 60

Rice Consumption

FUN FACTS

• Answer is A : Individual Indonesian consumes rice 139 kg per year. More than 2 times compared with Japanese

Indonesia China Malaysia Japan

139

100

63 60

Business Environment

Fast Growing GDP

Business Environment

Industry in Indonesia

Religious holiday:

• Islam: Birth of Prophet Muhammad, Ascension of the Prophet, Eid al Fitr, Feast of the Sacrifice, Islamic New Year

• Christian: Good Friday, Ascension Day, Christmas

• Hindu: Day of Silence

• Buddha: Buddha's Birthday

Others:

• New Year

• Chinese New Year

• Labor Day

• Independence Day

Business Environment

Public Holiday

Average: 15 days per year

• Mandatory allowance given by employer to the workers to celebrate religious holiday

• Regulated in Indonesian Minister of Manpower Regulation No. PER-04/MEN/1994 dated 16 September 1994

• Paid to employee who has minimum 3 months of continuous service to the company

Business Environment

Religious holiday allowance (THR)

• Common religious holiday for THR payment:

– Moslem: Eid al-Fitr

– Christian: Christmas

– Budhist: Vesak

– Hindu: Day of Silence

• Payment is made at least 7 days

before the religious holiday

• Amount is minimum 1 month of salary

Business Environment

Religious holiday allowance (THR)

• important religious holiday celebrated by Muslims

• conclusion of 29-30 days of dawn-to-sunset fasting

• Eid al-Fitr tradition in Indonesia:

– Mudik/Homecoming

– Ketupat

Business Environment

Eid al-Fitr

Indonesia Flag

FUN FACTS

• Which Flag is Indonesia flag?

A. B. C.

FUN FACTS

• Answer is A: But did you know that

Indonesia Flag and Monaco flag using the

same color composition, just Indonesia Flag

is slightly wider than Monaco Flag

Indonesia Flag

Indonesia Poland Netherlands

Business Etiquettes

Link: https://www.youtube.com/watch?v=SmcvvLI87mg

Working Practices

• Business hours – 8AM to 5PM (Monday to Friday) and 8AM to 1PM on Saturdays

• Flexible attitude towards TIME

(also referred as “RUBBER TIME”)

Business Etiquettes

Structure and Hierarchy

• Organizations tend to be Hierarchical

• Ideas and decisions are generated from the top

• Men are addressed as “BAPAK” and women as “IBU”

Business Etiquettes

Working Relationships

• Relationships are based on trust and familiarity

• Networks and friendship is important

• Great emphasis on age and respect

• Gifts are appreciated but…

Business Etiquettes

Business Practices

• Language used is either English or Bahasa Indonesia

• Handshakes are exchanged before and after business meetings

• Greetings are accompanied by a slight bow

• Business cards are essential items

Business Etiquettes

Business Wear

• For men- a suit and tie must for meetings or BATIK shirts can also be worn in formal situations

• For women- blouse that covers at least their upper arms and skirts knee length or longer

Business Etiquettes

Coffee

FUN FACTS

• Kopi Luwak is the most expensive coffee from Indonesia, Why this coffee is so special?

A. Special Coffee tree B. Special animal C. Special blending process

FUN FACTS

• Answer is B: Kopi Luwak is made

from Asian palm civet (Luwak) by let

them eat fresh coffee beans and then

excrete it out. And then we drink it!

Coffee

Culture • One of the most Collectivism society

• Family is very important

Communication

• High contexts culture

• Non-verbal behavior

Business

• Building relationship by trust & familiarity

• Seniority and Hierarchy are emphasized

Summary

Terima kasih Thank you Q & A