Using an Agent or Distributor Foreign companies wishing to sell their products in Indonesia are required to appoint an Indonesian agent or distributor pursuant to Ministry of Trade (MOT) Regulation No. 36/1977. The registration of an Indonesian agent or distributor with the Directorate of Business Development and Company Registration at the MOT is mandatory under… Read More

Market Overview Indonesia is Southeast Asia’s largest economy and while Indonesia’s annual growth slowed down to 4.5% in 2009, it expanded to 6.1% in 2010. Some economists predict that Indonesia’s economic growth may reach 8% in 2011. During the difficult global conditions of 2009, Indonesia’s economy was among the top worldwide performers. Stock market valuation… Read More

Indonesia has a large, mostly low-skilled labor pool with a generally relaxed work ethic. Indonesia has a vast labor pool with great potential. However, you’ll need to hone your management skills to be effective in Indonesia. With the world’s fourth-biggest population, finding workers is easy. But finding skilled employees is more challenging. Furthermore, qualified managers… Read More

Deal-making can be a slow, sometime frustrating process; patience is a must. Like most things in Indonesia, negotiating takes time. This is caused by factors ranging from government paperwork, to superstitions that dictate the right date to sign a deal. Decision-making can be a slow process. Because Indonesian decision-making is often based on consensus, proposals… Read More

To be effective with Indonesians, you must understand what’s important to them. This can be challenging in this diverse nation. Harmony and maintaining face are cherished in this society. As in most of Asia, harmony is cherished and conflict avoided. There is a strong emphasis on “getting along.” In the workplace, efficiency is often sacrificed… Read More

Indonesia is a place where yes can mean no, and words can be deceiving. You’ll need to read between the lines to communicate effectively. Communication often starts at a superficial level, then slowly moves deeper toward the true meaning. The official language is Bahasa Indonesian, which helped unite this young, diverse nation. The official language… Read More

Networking and connections are vital for success. As in much of the world, Indonesians prefer doing business with friends. One key to success in Indonesia is to allow plenty of time for building relationships. In many cases, you’ll need to get to know someone before you can conduct business with that company. An important part… Read More

Indonesia is a nation of contrasts. It’s a relatively new country, yet it is based on ancient cultures. It’s geographically and ethnically dispersed, but it has a strong sense of nation. Its’ a vast, tropical nation comprised of more than 17,000 islands. Indonesia is comprised of more than 17,000 islands strewn across the South China… Read More

Indonesia is a risky trading environment. Indonesia’s banking sector remains weak in the aftermath of the economic crisis. This constrains lending and it has increased bank charges on local companies. Accordingly, selecting the right partners is critically important and undertaking thorough due diligence is recommended. Austrade stresses to Australian companies that any business should be… Read More

ReligionThe majority of Indonesians are Muslim, whilst there are also Christians, Buddhists, Hindus and animists. In Indonesia, there is an expectation that everyone has a religion. Therefore it is important to be respectful and accommodating where religion is concerned. Some Muslims (the more devout) pray five times a day and will interrupt other activities to… Read More