Location: South-eastern Asia, archipelago between the Indian Ocean and the Pacific Ocean

Capital: Jakarta

Population: 241,973,879 (July 2005 est.)

Language: The official language of Indonesia is known as Indonesian or 'Bahasa Indonesian'.

Lifestyle & Aspirations
In urban environments, Indonesians enjoy typical city-based activities - eating out in restaurants, ten pin bowling, go-karting, shopping, skateboarding and swimming. Jakarta has several water parks with public pools. Sport is popular and most sports have an association in Indonesia, from volleyball to Aussie Rules football. There are more than 40 golf courses around Jakarta, although golf tends to be a fairly elitist activity here.
Shopping malls tend to form a social hub, with food courts, coffee shops and multiplex cinemas in addition to shops. American-style restaurants, even those as basic as McDonalds, carry an element of prestige and are regarded by many Indonesians as a treat, despite the proliferation of superb Indonesian restaurants. Indonesians also enjoy theme parks, zoos, museums and galleries. Indonesians travel a lot within their own country, which is surrounded by thousands of magnificent beaches, with beautiful mountain scenery inland.
Outside the cities, life is much slower and simpler and leisure activities are restricted to sports, watching television (although not all homes have one), fishing and going to the beach.
Aspirational items include anything that confers prestige - an imported car, the larger the better; the latest cellphone; or any item with a known label on it.

The Essentials (10 Key Tips)
1. Saving face is an essential element of Indonesian culture - saving face yourself and allowing others to do the same.
2. Personal relationships are more important in business than fast profits.
3. People who are senior both in age and in business should be accorded respect.
4. Indonesians relate better to the past and the present than they do to the future, so base business proposals and team motivation on what's happened before, rather than what may occur in the future. Most believe, in any case, that the future is predetermined.
5. Communication is essential and face to face is better than in writing. An Indonesian saying states: 'Never write when you can call and never call when you can visit.'
6. Always make allowances for cultural events like Ramadan, funerals, weddings, prayer time and even cemetery visits. Absenteeism in the workplace is very common.
7. Managers need to adjust their style to paternalistic and genuinely caring in order to gain the cooperation of Indonesian workers.
8. Always check that someone has followed your instructions. Announce them slowly, repeat, and check that the person understands.
9. Don't expect Indonesians to meet deadlines. Time is fluid, or 'rubber', here.
10. Handle conflict with care and focus on preserving the harmony of the group.

Working with the Indonesians
Business in Indonesia is very much relationship-based, and anybody wanting to work with Indonesians must be prepared to make frequent visits to build respect and trust and to maintain communication after any deal is done.
Indonesia offers a great deal of investment opportunities and business here can be very rewarding, but it is important not to try to impose Western culture on an Indonesian workforce. Basic values are completely different, like the concept of time, which is very fluid to Indonesians. Deadlines are meaningless unless very carefully explained.
Behaviour is collectivist, and society and business both have a strict hierarchy. Belonging to a group is very important. Asal Bapak Senang - making the boss happy - is one of the fundamentals of business and brings its own challenges. Employees want and expect to be loyal to a boss, but will also protect them from bad news by covering up or ignoring potential problems. Managers have to be especially skilled and alert.
Expatriates can also face resentment. Indonesians may feel they are being patronised, or exploited, or deprived of a job that has been taken by a foreigner. Preserving harmony is another basic of business in Indonesia and maintaining the status quo takes diplomacy and skill.

Making a Good Impression
To make a good impression in Indonesia, it is critical to understand local culture, even if you don't agree with some of its values. Many managers find the poor work ethic deeply frustrating, so you will need to learn how to direct a team and get results by working around this.
Indonesians can appear quite racist and judgmental, happily denigrating one another's tribes and religions and referring to white expatriates as 'bule' (albino). You have to learn to rise above this; don't join in.
Observe Muslim and Hindu sensibilities about the use of the left hand, which is considered unclean. Don't use it to shake hands, pass things to other people or to eat. Don't touch an adult's head, either, as it is believed to be the 'seat of the soul'.
Always dress smartly for business; commanding respect is essential and in a managerial position, you will be seen as a father (or mother) figure. Adopt a paternal attitude to your team; learn their names, family situations and birthdays and make them feel looked after. Adherence to a group is important to Indonesians.
Remember that saving face is essential. Don't raise your voice and shout, or put somebody down in public. Give feedback very carefully and diplomatically and think hard about how to handle dispute resolution. Everything is different here from the West.

Business Etiquette
Business Cards
It is important to exchange business cards when meeting business associates in Indonesia so make sure that you have a good supply with you, ideally smartly presented, with embossed text. Titles and positions should be clearly set out. Indonesians will offer their business card with their right hand or with both hands. As with other Muslim countries, things are not offered with the left hand and you should remember this when proffering your own card. Take time to examine the card before filing it in a card wallet, not stuffing it in your pocket, which is a sign of disrespect.

Body Language
Indonesians are quiet and restrained in their body language. Overt gestures are not the norm as they may be elsewhere, particularly in some Latin countries. Living in a very crowded country means people have become accustomed to a lack of personal space. Shaking hands on greeting is usual, for both men and women. Indonesians touch each other more frequently than many other East Asians though the head, regarded as the seat of the soul, remains sacred. Holding your head higher than a superior is not done and so Indonesians may bow or bend their head in the presence of a superior or older person.
Do not hand anything over with the left hand, which is considered unclean in Muslim countries. Do not point or put your hands on your hips; these gestures are considered to be rude or aggressive. When seated, feet should be tucked away and the souls of the feet or shoes should not be pointed at another person.

Communication Style
Communication style in Indonesia is indirect. Indonesians are very friendly but usually communicate in a quiet voice and without much tonal variation. They are not given to displays of emotion. They are respectful in their language and in their manner but they can be ambiguous and will avoid conflict or delivering bad news, or admitting that they do not know something. They can be uncomfortable with Western directness, which is often perceived as rudeness. They are attentive listeners and do not interrupt.
Emphasis is placed on achieving harmony and maintaining face. Confrontation is avoided and teams in the workplace will protect managers from hearing about problems, which can be a problem in itself.
Despite their understated style, Indonesians are tough negotiators and will bargain hard.

Gift Giving
Gift giving is not required at first business meetings unless it is a simple token from your country, but should be given when a relationship has matured and as a sign of its strength. Presents should be given in a friendly and relaxed atmosphere. Choose something that is practical or a good symbol of your country or business. Do not give anything too expensive which may cause embarrassment. Remember that this is a Muslim country and that alcohol and pork are taboo for many people. Do not expect the recipient of a gift to open it in front of you. Likewise, you should only open a gift after the giver has left.
At Chinese New Year, it is customary to present a hong bao, a gift of money in a red envelope to children and service personnel you deal with on a regular basis. Ensure that you give only new bills in even numbers and even amounts. Many employers give each employee a 'hong bao' equivalent to one month's salary. All Indonesians by law receive one month's salary at the end of the Muslim fasting month of Ramadan.

Business Meeting Culture
Planning a Meeting
When planning a meeting, expect a degree of relaxation or tardiness on the part of the Indonesians and factor in plenty of time. They are often not punctual though you should ensure that you, as a foreigner, are always on time. The more senior the person you are meeting, the later they are likely to be.
Indonesians are enthusiastic talkers and often meetings will run on though nothing may be, in your view, accomplished - particularly in the first meeting. Take plenty of business cards. Allow extra time if you need interpreters and have all material translated in to Bahasa Indonesia. Try to ensure that you are meeting with decision makers.

During a Meeting
Be prepared to engage in some friendly small talk at the beginning of a meeting. Relationship building is important and Indonesians also need to put you in context of seniority, experience, position etc.
Indonesians are indirect communicators and can find Western directness too blunt so take care over how things are expressed. They will often talk around a point rather than going straight to it. They will often tell you what you want to hear. If you have problems, talk around them until they get the point. Take care to see if people are understanding you - they will not always tell you if they do not.
Indonesians listen attentively and you should not interrupt them. Allow for breaks in the conversation (they will often consider a point before answering it) and do not be surprised if some of the Indonesian team do not speak at all. Usually, only the senior team members play an active role.

Following a Meeting
Do not rush off at the end of a meeting. Be prepared to stay behind which will demonstrate how important the meeting and the relationship is to you. Also be prepared for people to question you after the meeting has finished; raising questions during a meeting may be a sign that they do not understand you, and will cause loss of face.
Follow everything in writing. Don't pressurise Indonesians into making a decision - decision-making takes a long time and Westerners are known for their impatience.

Motivating Others
Western managers may have to shift their thinking completely when it comes to motivating Indonesians. Status and power are big drivers, but money, or the idea of money to come in the future, isn't. Dangling targets in the carrot-and-stick approach does not generally work. An Indonesian worker may not be motivated by the idea of money until they actually need the money, which results in inconsistent performance.
Pay is not usually performance-related as this upsets the harmony in the group, and individuals are not encouraged to shine above their colleagues. If individuals are conspicuously rewarded in front of colleagues, resentment may arise.
Motivation comes from job satisfaction for Indonesians. This means a kind, caring and understanding boss, and friendly co-workers. It also means a chance to progress through loyalty to a manager (but not necessarily a company). There is a general belief that the trappings of power - a car, a mobile phone, for example -automatically come once one is in a position of power or seniority, rather than as a result of performance.
Indonesians are also motivated by relationships. Keeping the boss happy is very important and if the boss is effective within the company, the subordinate basks in the reflected glory.

Effective Presentations
Indonesians are good listeners and generally won't interrupt a presentation. Unless you use an interpreter, though, it is unlikely that your presentation won't be fully understood, as the command of English is not widespread. Admitting this will cause loss of face to audience members and the presenter, so you are likely to be left to carry on regardless.
Indonesian presenting style is harmonious, quiet and often (to a Westerner) monotonous. Public meetings usually involve long, rambling speeches and in meetings, only the most senior members of the team will speak while the others listen deferentially. It is not in the Indonesian culture to challenge a speaker or presenter.
You will almost definitely need an interpreter and should be aware that however much speaker training you have had to create an interesting and lively presentation, the interpreter will deliver it in a quiet monotone. Don't make jokes or attempt to introduce humour. Don't be boastful. Focus on past achievements more than future ambitions; Indonesians relate better to the past and present. Do not be afraid to use repetition, and keep the language simple. Remember that Indonesians are more motivated by a successful working relationship than by a fast profit.
An Indonesian audience expects a presentation to be delivered in a form that they will understand, and in such a way that they are not expected to ask questions at the end.

Managing Relationships
Managing relationships is a question of blending your own, Western values with those of your Indonesian colleagues or employees (or customers, or suppliers) to create a happy medium. You will need to understand the concept of face and the importance of the group, and they will need to develop a respect for deadlines and targets. This can be a major cultural change for Indonesians and if you want to introduce Western ideas like annual appraisals or performance-related pay, it will have to be handled with sensitivity. Many multinationals in the country offer specific training programmes to help Indonesians cope with this change.
Conflict resolution is another challenging area, in which an expatriate treads a fine line between wanting to solve the problem and making it worse. There are various techniques, all of which involve indirect communication, constructive criticism and often, an attempt to spread the blame so that face can be saved.
Other relationships which need to be managed are with customers and suppliers. These also depend on building trust and respect, and maintaining it. Socialising is part of the process. You should accept all invitations to dinners and banquets, and invest in corporate entertaining yourself. Network as much as possible to keep in the loop - this is how information is shared in Indonesia.