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Indonesia Economy Forum

no one post here for a while... so i thought i give some recent headlines on what happen in indonesia....

from the latest:

Stock Market Update Indonesia: Return of Foreign Investors?
25 November 2017 |

The benchmark Jakarta Composite Index closed 0.06 percent higher at 6,6067.14 points on Friday (24/11), not far from its all-time record high. It is interesting to note that foreign investors showed a renewed interest in Indonesian stocks over the past three trading days. Foreigners recorded a "net buy" of IDR 2.59 trillion (approx. USD $192 million) over these three days.

This renewed interest in Indonesian stocks could be related to window dressing ahead of the year-end (a strategy that is often used by mutual fund and other portfolio managers to improve the appearance of a fund's performance before presenting it to clients or shareholders).

Moreover, foreign investors have already sold a lot of Indonesian stocks so far this year - primarily due to global factors such as monetary tightening in the USA and geopolitical issues - and therefore it makes sense that foreigners now start to become interested again in emerging (equity) markets. So far this year, foreigners sold more Indonesian stocks than they bought. Year-to-date, foreigners' net sell has now reached IDR 26.61 trillion (approx. USD $2 billion).

Meanwhile, not all foreign funds that exited the stock market actually left Indonesia. So far this year there in fact occurred a marked increase in foreign funds into Indonesian state bonds. However, considering the central bank of Indonesia (Bank Indonesia) continued to cut, aggressively, its interest rates in August and September, bonds have somewhat lost their appeal.

But despite foreigners withdrawing their money from Indonesian stocks so far this year, the benchmark Jakarta Composite Index still managed to touch a new record high last week, implying domestic investors have been eager to invest in Indonesian stocks. As a result, Indonesian stocks are currently rather expensive and this could make foreign investors somewhat hesitant to invest heavily in Indonesian stocks and could make them prefer to wait & see first before taking any action.

On Friday (24/11) the Jakarta Composite Index rose 0.06 percent to 6,067.14 points.

https://www.indonesia-investments.c...ndonesia-return-of-foreign-investors/item8382


Construction on Indonesia's Cirebon Power Plant Expansion Project Started
16 November 2017
https://www.indonesia-investments.c...ower-plant-expansion-project-started/item8362

World Bank's Doing Business 2018: Indonesia Climbs in Ranking
15 November 2017
https://www.indonesia-investments.c...ess-2018-indonesia-climbs-in-ranking/item8360

Government of Indonesia Sees No Weakening Purchasing Power
14 November 2017 |
https://www.indonesia-investments.c...a-sees-no-weakening-purchasing-power/item8357
 
BI issues export-import regulation using baht, ringgit
Senin, 27 November 2017 17:41 WIB - 2 Views

Reporter: Antara

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Ilustration. Rupiah and Ringgit, two currencies used by communities in the Indonesia-Malaysia border region on Sebatik Island to transact in the market and in stores that have been going on for decades. (ANTARA PHOTO/M Rusman)

Jakarta (ANTARA News) - The central bank of the Republic of Indonesia, Bank Indonesia (BI), has issued technical regulations to settle trade transactions between Indonesia and Malaysia using Ringgit, as well as between Indonesia and Thailand using Baht, in order to reduce dependence on certain currencies and maintain exchange rate stability.

The regulation is the Governor Board Regulation on Local Currency Settlement (LCS), BI`s Executive Director of the Communication Department Agusman said here on Monday.

"Transaction using local currencies can encourage bilateral trade between Indonesia and Thailand, as well as Indonesia and Malaysia and also reduce dependence on certain currencies so as to support the stability of the exchange rate," Agusman explained.

Bilateral trade without using US dollar will be conducted through commercial banks designated as intermediaries called Bank Appointed Cross Currency Dealer (ACCD Bank).

BI and the authorities in Malaysia and Thailand will assign AACD Banks. The authorized AACD Banks will gain flexibility in performing certain financial transactions and activities in foreign exchange markets.

According to Agusman, those activities and financial transactions include the opening of Baht and Ringgit currency accounts, direct quotes for Baht and Ringgit currencies to Rupiah, and trade financing in Baht and Ringgit currencies.

"This financial provision will be effective from Jan 2, 2018," he stated.

Meanwhile, technical regulations concerning the settlement of bilateral transactions between Indonesia and Thailand are contained in the Governor Board Member Regulations on the Settlement of Bilateral Trade Transactions between Indonesia and Thailand Using Rupiah and Baht through Banks.

(T.SYS/B/KR-BSR/F001)
Editor: Heru Purwanto

COPYRIGHT © ANTARA 2017
 
Iranian cyclist wins Tour de Singkarak 2017
Jakarta | Tue, November 28, 2017 | 04:31 pm

Iranian cyclist Khalil Khorshid of Tabriz Shahrdary Team won the Tour de Singkarak (TdS) 2017 competition. The ninth, and the last, lap was held on Nov. 26 with the finish line was located in Bukittinggi, West Sumatra.

Khorshid finished the race in 30:12:18 and took home a total prize of one hundred million rupiahs.

“I’m very happy that I could earn the best result, especially since this is my first time participating in TdS. The public welcome has been amazing, insya Allah (God’s willing) I’ll come back next year,” told Khorshid.

Apart from earning the yellow jersey from winning the race, he also took home the first spot for the climbing category (polka dot jersey) with 92 points.

Moreover, his team, Tabriz Shahrdary Team was also crowned as the best team and took home a total prize of 120 million rupiahs.

For the sprint category, the winner was German cyclist Robert Muller of Embrace The world Cycling Germany team who collected 77 points. Muller also won the first and third laps of the race.

“A pretty good result at TdS, I’m happy with what I’ve achieved […] I’ll try to return next year,” Muller said.

In the category of the best Indonesian cyclist (red and white jersey), Jamal Hibatulloh of KFC Cycling Team was crowned as the winner. Jamal who is from Sumedang, West Java finished the race in 30:24:43. He also took the sixth spot in the general ranking ad was the first person who finished the fourth lap of the race.

“I’m very impressed with the result of this year’s TdS, especially since I made it into the top 10 of general ranking,” said Jamal.

TdS was first held in 2009 and it has become a mandatory championship in Asia that is able to attract more than one million visitors. In 2013, Amauri Sports Organization (ASO), the committee of Tour de France, recommended TdS as a major race in the Asian region.

Based on the number of visitors, TdS takes the fifth spot with 550,000 people right after Santos Tour Down Under with 750.000 people, Vuelta an Espana with five million people, Giro d’Italia with eight million people and the in the first spot is Tour de France with 12 million people.

This year marked the ninth anniversary of the event.

Throughout the nine years of TdS, it has resulted in the positive growth in the province’s tourism and hospitality industry.

“In 2014, there were 274 hotels and 5,588 homestay rooms. In 2016 the number went up to 339 hotels and 7,799 homestay rooms,” said West Sumatra deputy governor Nasrul Abit.


Below is the final result of Tour De Singkarak 2017

General Ranking (Yellow jersey)
1. Khalil Khorshid (Tabriz Shahrdary Team) 30:‪12:18‬
2. Daniel Whitehouse (CCN Cycling Team) 30:‪13:06‬
3. Yonnatta Alejandro Monsalve (Qinghai Tianyoude Team) 30:‪21:36‬

Sprint Category (Green jersey)
1. Robert Muller (Embrace The World Cycling) 77 points
2. Imam Arifin (KFC Cycling Team) 57 points
3. Daniel Whitehouse (CCN Cycling Team) 51 points

Climb category (Polkadot jersey)
1. Khalil Khorshid (Tabriz Shahrdary Team) 92 points
2.Wilmar Jahir Munos Peres (Sapura Pro Cycling) 71 points
3. Loic Desriac (Bikelife-Dong Nai) 51 points

Best Indonesian cyclists (Red and white jersey)
1. Jamal Hibatulloh (KFC Cycling Team) 30:24:43
2. Agung Ali Sahbana (KFC Cycling Team) 30:29:58
3. Abdul Soleh (BRCC Banyuwangi) 30:32:46

The best team
1. Tabriz Shahrdary Team 91:‪03:00‬
2. KFC Cycling Team 91:25:20
3. Sapura Pro Cycling Team 91:28:32

http://www.thejakartapost.com/travel/2017/11/28/iranian-cyclist-wins-tour-de-singkarak-2017.html

oh... and pariaman triathlon is coming up... kudos to the local gov for embracing sport tourism
http://www.tourdesingkarak.id
http://www.pariamantriathlon.com
 
Last edited:
Mattel Indonesia exports toys worth $150m per week
  • -

    News Desk
    The Jakarta Post
Jakarta | Tue, December 5, 2017 | 06:49 am
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PT Mattel Indonesia's factory in Cikarang, West Java (Courtesy of/PT Mattel Indonesia)
Toy maker PT Mattel Indonesia produces about 2 million toys, including Barbie dolls, a week with total exports worth US$150 million.

The products of its factory in Cikarang, West Java, account for about 60 percent of the global market, said Mattel Indonesia vice president and general manager Roy Tendean on Monday during the celebration of the company’s anniversary.

Mattel Indonesia, a subsidiary of Long Angeles’ based Mattel Inc., celebrated its 25 years of operation in Indonesia on Monday.

He said that the company, which produces Barbie dolls, Hot Wheels, Thomas & Friends, etc., planned to set up a link-and-match program with five vocational schools (SMK) in West Java.

“We want to contribute to human-resources development as education is the responsibility of educational institutions, the business community and the government,” said Roy.

The five SMK involved in the program are SMK 1 Cikarang Pusat, SMK 1 Cikarang Barat, SMK 1 Cikarang Selatan, SMK Kerawang and SMK Mitra Industri Cibitung.

“The link-and-match program is to ensure that students receive balanced teaching materials between the theory and real working experience at a company,” he added, during the event attended by Industry Minister Airlangga Hartanto and the Mattel Inc. chief supply chain officer and executive vice president, Peter Gibbons. (jlm)

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What to expect from Indonesian ecommerce in 2017
572c3504edb17fcb8c4e22bb7dc6393b
Andrew Prasatya
11 months ago
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Photo credit: sutiporn / 123RF Stock Photo.

Indonesia, among other emerging Asian economies, presents many opportunities for ecommerce. Current projections put the archipelago’s online market at US$130 billion by 2020. With Indonesia’s uniqueness, the ecommerce industry should innovate to dominate the market by improving logistics, technology, and other important facets.

As someone who works in the ecommerce industry, I am exposed every day to discussions on Southeast Asia and Indonesia, specifically. Here are my predictions on the country’s ecommerce trends in 2017.

One-day delivery service
Delivery time is one of the most common issues Indonesians face when shopping online. People would say, “I don’t want to buy online because it takes a really long time to get an item. I’d rather buy stuff from a physical store so I can take it right away.”

In 2016, we saw a lot of effort from ecommerce companies to overcome such issues. We saw Bukalapak collaborate with GoJek for one-day delivery services. Tokopedia also used the same strategy with Go Send and Grabexpress, and Lazada made their own delivery service called LEX (Lazada Express).

In 2017, we will see more aggressive movements from ecommerce companies to crack this issue and grab more customers. On January 18, J&T, a logistics service, announced that they were collaborating with Tokopedia to offer free package pickups from users’ homes. We have also seen a lot of rising app-based logistics services, such as Deliveree and Etobee, that offer more delivery options for Indonesian customers. PopBox, a startup that produces automated parcel lockers, can also be used by other ecommerce players.

The rise of chat bots
A company’s customer service division takes up a lot of resources; they need to be on standby 24/7 to make sure each customer complaint or question is handled correctly.

Tech Monster, Google, Facebook, and Twitter are all introducing their own chat bots to help with their customer service activities—Google Allo, Facebook Messenger, and Twitter Bots. In 2017, people will spend more time on social media, so using chatbots based on social media platforms is a good move for companies dealing with ecommerce.

Optimization of mobile apps
According to Indonesia’s Ministry of Communication and Informatics, 2018 will see 100 million active mobile phone users. With these numbers, Indonesia will have the fourth biggest population of mobile phone users after China, India, and the US.

Image-25-01-2017-at-1.30-PM.jpg

Photo credit: iPrice Insights.

In 2016, online transactions on PC were still higher compared to those on mobile phones (21.4 million vs. 12.82 million). However, that looks to have changed this year—online transactions on mobile phones were predicted to be higher than those on PC. We have also seen how ecommerce companies, such as Bukalapak and Tokopedia, have actively promoted their own mobile apps (they have made a lot of special promotions for those who purchase from these apps).

To increase mobile phone transactions in 2017 and to get a better insight of their customers, ecommerce companies will try their best to optimize their mobile apps. They will do this by improving their UX and UI, offering more exclusive promotions, and considering affiliate marketing and influencer campaigns.

Customer loyalty programs
A recent research found that 49 percent of customers would gladly switch brands for coupons. In 2016 we saw a lot of ecommerce companies offer coupons to boost their customers’ shopping experience. Indonesian ecommerce companies also maximized this trough price comparison and coupon platforms.

Image-25-01-2017-at-1.30-PM-1.jpg

Photo credit: iPrice Insights.

In 2017, I’m sure ecommerce companies will be more aggressive in making offers. With a lot of religious, traditional, and national events in Indonesia like Chinese New year, Eid Fitri, Christmas, Islamic New Year, Nyepi, and independence day, there are huge possibilities for companies to offer unique coupons.

More payment options
Based on data from WSJ, one of the biggest challenges in Indonesian ecommerce is the low penetration of debit and credit cards in the country. Aware of this situation, a lot of companies offer more than one payment option (ATM transfer and cash on delivery).

Image-25-01-2017-at-1.30-PM-2.jpg

Photo credit: iPrice Insights.

There are some Indonesians who are still afraid to make online payments; some are afraid of fraud, while others are afraid that their data is not secure. In order to get more transactions in the country, ecommerce companies should include more payment options.

E-wallets and startups such as iPayMuand PonselPay are some options for ecommerce companies looking to offer more payment options.

These are five predictions of Indonesian ecommerce trends for 2017. Soon, we will see more ecommerce companies make aggressive and interesting moves to dominate the Indonesian market.

Categories: Community, Ecommerce
 
Indonesia attracts more foreign direct investment in Q2
WED, JUL 26, 2017 - 11:32 AM
INDONESIA-ECONOMY-065048_0.jpg

The flow of foreign direct investment (FDI) into Indonesia increased significantly in the second quarter from the tiny gain in the first three months of 2017, the investment board said on Wednesday.
PHOTO: AFP
[JAKARTA] The flow of foreign direct investment (FDI) into Indonesia increased significantly in the second quarter from the tiny gain in the first three months of 2017, the investment board said on Wednesday.

On an annual basis and in rupiah terms, FDI increased 10.6 per cent in the April-June quarter. Growth in the first quarter was just one per cent.

The amount of incoming FDI to South-east Asia's largest economy, excluding investment in banking and the oil and gas sectors, was 109.9 trillion rupiah (S$11.2 billion) in the second quarter or about US$8.2 billion, the board's deputy chairman Azhar Lubis said.

The board used a rupiah exchange rate of 13,300 a US dollar, the same as assumed for the average in the 2017 state budget. That compares with the rupiah's spot trading rate on Wednesday morning of 13.332 per US dollar.




For the first quarter, Indonesia reported 97 trillion rupiah of FDI.




In US dollar terms, FDI into Indonesia in the second quarter was up 15.5 per cent from the same period last year. In April-June 2016, FDI amounted to US$7.2 billion.

REUTERS


http://www.businesstimes.com.sg/gov...attracts-more-foreign-direct-investment-in-q2
 

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New Order Miracle of Suharto's Indonesia


Around the mid-1960s Indonesia's economic situation had reached an alarmingly bad condition. The economy suffered from the chaotic political course set out by president Soekarno, Indonesia's first president. Economic matters took a back seat for Soekarno who had spent a lifetime fighting in the political arena. Some examples of his policies that negatively affected the economy were the cutting off of links with the West (thus isolating Indonesia from the world economy and barring the country from receiving much needed foreign aid money) and deficit spending through the printing of money, resulting in an out-of-hand hyperinflation. But after Suharto took over from Soekarno in the mid-1960s economic policies underwent a radical change of course.

Indonesia's economic development during Suharto's New Order government can be divided into three periods, each characterized by specific policies aimed at specific economic contexts. These periods are:

Economic recovery (1966-1973)
Rapid economic growth and increasing government intervention (1974-1982)
Export-led growth and deregulation (1983-1996)

Economic Recovery (1966-1973)

The essential mission of Suharto's New Order government was economic development; the first step being the reintegration of Indonesia back into the world economy by rejoining the International Monetary Fund (IMF), the United Nations (UN) and the World Bank in the second half of the 1960s. This started up the flow of badly needed financial assistance and foreign aid from the Western countries and Japan into Indonesia. Hostilities with Malaysia (Soekarno's confrontation politics) were stopped as well. The second step was curtailing the hyperinflation. Suharto turned to a group of economic technocrats (most of whom were educated in the USA) to come up with a plan for economic recovery. In the late 1960s price stability had been established through a policy which prohibited domestic financing in the form of domestic debt or money creation. Subsequently a free market mechanism was restored by decontrol measures, followed by the implementation of the Foreign Investment Law (1967) and Domestic Investment Law (1968). These laws contained attractive incentives for investors to invest in the country resulting in double-digit economic growth in 1968.

Rapid Economic Growth and Increasing Government Intervention (1974-1982)

Until 1982 rapid annual economic growth of at least five percent was maintained. Not unimportant, Indonesia benefited significantly from two oil booms that emerged in the 1970s. The first one began in 1973/1974 when the Organization of Petroleum-Exporting Countries (OPEC), of which Indonesia was a member, cut its exports drastically, causing a major rise in oil prices. The second oil boom took place in 1978/1979 when the Iranian revolution disrupted oil production causing another massive price increase. Due to these oil booms the New Order's export earnings as well as government revenues rose steeply. This enabled the public sector to play a greater role in the economy by undertaking substantial public investments in regional development, social development, infrastructure and through the establishment of large-scale (basic) industries, among which were the import-substitution industries. Capital goods and raw materials could be imported due to increased foreign exchange earnings, giving rise to a developing manufacturing sector. However, major riots broke out during a visit of Japan's prime minister in 1974 because of the perceived over-presence of foreign investment projects in the country. Indonesians were frustrated that the indigenous people seemed to be excluded from the fruits of the economy. The government was shocked because of this violent event (that became known as the Malari affair) and introduced more restrictive measures on foreign investment and replacing it with preferential policies favouring the indigenous businessmen. Increased government revenue brought on by the first oil boom meant that the government was no longer dependent on foreign investments, therefore an interventionist approach could be started.

Export-Led Growth and Deregulation (1983-1996)

In the early 1980s the price of oil began to fall again and currency realignments in 1985 aggravated Indonesia's foreign debt. The government had to take new measures to restore macroeconomic stability. The rupiah was devalued in 1983 to ease the rising current account deficit, a new tax law was introduced to increase revenue from non-oil taxes and bank deregulation measures were taken (credit ceilings on interest rates were lifted and banks were allowed to set these rates freely). Moreover, the economy had to be redirected from an economy dependent on oil to an economy containing a competitive private sector oriented towards export markets. This implied new deregulation measures to improve the investment climate for private investors. When the oil price fell again in the mid-1980s, the government increased measures to accompany export-led growth (such as the exemption of import duties and another devaluation of the rupiah). These policy changes (in combination with deregulation packages in the 1990s) also affected foreign investments in Indonesia. Especially export-oriented foreign investments were welcomed.

Another sector that was affected by far-reaching deregulation measures was the Indonesian financial sector. New private banks were allowed to be established, existing banks could open up branches across the country and foreign banks were free to operate outside Jakarta. These financial reforms would later turn out to be a problem that intensified the crisis in Indonesia in the late 1990s. But in the meantime, however, these rigorous measures had a positive impact on Indonesia's economy. Manufactured exports began to become the engine of the Indonesian economy. Between 1988 and 1991 Indonesia's Gross Domestic Product grew by an average of nine percent per year, slowing down to an average of 'just' 7.3 percent during the period of 1991 to 1994 and rising again in the following two years.

Problems at the Horizon

The text above paints a rather positive picture of the economy during the New Order. Indeed the economy grew rapidly and with it came improvements in its social development (although at a slower pace). In particular the reduction in absolute poverty was a remarkable achievement of the government. In the mid-1960s over half of the Indonesian population lived below the poverty line but by 1996 this number had been reduced to 11 percent of the total Indonesian population. However, the style of rule of the New Order government entailed a couple of dangerous consequences that would come to a climax during the Asian Financial Crisis in the late 1990s.

First of all the essence of the New Order's government's nature. It was a military-backed authoritarian regime that did not respect human rights. During its course for over three decades the government seemed to become more and more out of tune with its citizens. Politics and economics were basically taken away from the public and kept within a small elite around Suharto. But as Indonesians became more educated due to increasing social developments, its educated circles naturally wanted to let their voices heard and participate in politics as well as the economy. Suharto, however, was not in favour of this and reacted by placing more restrictions on Indonesian society (for example the confinement of student demonstrations to university campuses only). This political standstill caused a lot of frustration in a large part of Indonesia's population.

Secondly - and related to the previous paragraph - the New Order was based on a system of nepotism and corruption in which a small group around Suharto benefited tremendously from the economic fruits of the country. This group consisted mainly of ethnic Chinese business partners (fueling ethnic sentiments) and was later joined by Suharto's children. Promises of openness and transparency of government policy were never complied with. Moreover, corruption prevents an economy from functioning effectively. This would be exposed during the Asian Crisis that emerged in 1997.

Thirdly - again related to the previous paragraphs - the financial system had begun to run out of control after the deregulation measures in the banking sector in the late 1980s. With little restrictions to open banks and branches it became more and more difficult to monitor the money flows within the Indonesian banking system. A serious lack of financial data, a weak regulatory and legal framework and illegal money flows all contributed to the fact that Indonesia would be hit hardest during the Asian Financial Crisis.

Read a detailed account about the Asian Financial Crisis.


https://www.indonesia-investments.com/culture/economy/new-order-miracle/item247
 

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Indonesian Business Culture


This section is written by Executive Orientation Services. This company provides cross-cultural training that teaches people to understand the differences that exist between Western and Indonesian business cultures.

Dimensions of Difference: why business must be approached differently in Indonesia

Indonesia has often been described as a shining chain of emerald islands scattered across the equator from Asia to Australia. Few other countries in the world are comprised of more distinct cultures and languages than Indonesia. Its diversity of peoples and belief systems makes it certain that the foreign professional working in Indonesia encounters situations that are confusing and unexpected. Add to this mix a struggling economy, a nascent democracy with a co-opted bureaucracy, and the world’s largest Muslim population, and the result is a fascinating conglomerate culture in one of the largest and most important countries in the world. Business must be approached differently in Indonesia than in most Western countries. Cultural background, education, and upbringing make a difference on how managers approach work.

Culture affects people and, therefore, business in five primary areas. To assess these differences, we ask the following questions:

1. What is the cultures belief in human nature?Does the culture believe that people are basically good, basically evil, or a combination of both?

2. What is the relationship between humans and nature? Are humans subjugated to nature? Does nature control your life? Do people live in harmony with nature, or does the culture believe that humans should have mastery over nature?

3. What is the culture’s sense of time? Is the culture past oriented where people look to the past as a guide for today? Does the culture live for the present? Is it perhaps situational? Or does the culture look towards the future with a belief that planning, deadlines, and goal setting make it possible for people to succeed?

4. What is the proper aspect of human activity? Is it enough just to Be, meaning that it is not necessary to accomplish great things in your life to feel that it has been worthwhile. Does the culture believe in Being in Becoming, where people are on the earth for their own inner development. Does the culture believe in Taking Action? This means that it is action-oriented with the belief that if people work hard, they will be rewarded.

5. What is the nature of social relationships in the culture? Is the culture authoritarian with clearly defined relationships like natural-born leaders and natural-born followers? Does the culture believe in the collective meaning that people are defined as part of a group? Does the culture believe in individualism and equal rights? This would mean that all people are equal and have control over their own destiny.

The differences between Western cultural styles and Indonesian cultural norms become very apparent in the business environment. Most Western cultures believe that humanity is basically good. Most Western cultures believe that the human-nature relationship is one of Mastery over Nature meaning that if nature gets in the way you change it. Most Western cultures have a very strong future-time sense with the belief that planning and scheduling today make it possible to succeed tomorrow. Finally, most Western cultures have a strong belief in individualism and equal rights meaning that if you work hard, you will be rewarded.

Sritex-Clothes-Fashion-Textile-People-Indonesia-Investments.jpg


Indonesian standard business culture is quite different. First of all, it should be understood that there is no single Indonesian culture. Indonesia with its 17,000 islands and hundreds of different ethnic groups is a vast collection of different peoples and cultures. Thus, you must always know who you are dealing with. However, Javanese culture has long dominated the archipelago and is the standard for Indonesian business culture today.

Indonesians generally believe that people are a mixture of good and evil. People are usually good especially when constrained by responsibilities to the group. However, there is the potential for evil in all people. Normally constrained individuals can perform irrational acts believed to be outside that person’s control.

There is a strong belief in subjugation to nature, meaning that nature controls your life and there is little you can do as an individual to move yourself ahead. One should accept one’s position in life.

Most Indonesians tend to look toward the past as an example for today. There is a strong belief in tradition but also in rules and regulations that need to be followed regardless of practicality.

In Indonesia the proper aspect of humanity is to be expressive and emotional although that expressiveness and emotionalism lives just under the surface. This means that it can be difficult to determine the emotional state of most Indonesian coworkers, but that strong emotions can surface in ways that may be confusing to a Western supervisor.

Social relationships tend to be twofold in Indonesian culture. First there is a strong authoritarian framework with natural born leaders and natural born followers. These relationships are clearly defined. However, within each particular group there is a strong belief that the community makes decisions in order to avoid individual responsibility.

A change in management becomes a particularly difficult situation in Indonesia. Often the corporate home office will not accept common practices and procedures found in Indonesia as a best practice and requires Indonesian managers and staff to adapt to the international corporate culture. A deep understanding of the cultural traits found in Indonesian business is required before an action plan can be completed to implement change. The home corporate office usually has little understanding of the profound cultural complexity of implementing change in Indonesian offices, factories, and businesses.

For these reasons and many others, it becomes critical that foreign professionals working in Indonesia look past the elaborate subterfuge found in Indonesian business and incorporate the correct cultural traits to manage Indonesian personnel. Simultaneously, Indonesian managers must be instructed in the expectations of their foreign superiors and coworkers. Without an understanding of the cultural expectations of the other group, frustration and confusion are the norm.

Understanding the best techniques for intercultural business management is the overarching goal of Executive Orientation Services (EOS) and its cross-cultural training programs. EOS will help you learn to understand that cultural patterns influence our own and others’ words and actions. By understanding cultural differences and similarities, you can develop ways to communicate and collaborate more effectively across cultures.

EOS provides you valuable tools for dialogue with your colleagues and friends, to begin to know them both as unique individuals and also as members of their cultures. You will soon learn to look at culture as a way to capitalize on differences to promote satisfaction and effectiveness in your business, your organization, your team, and your community. EOS brings a special and unique understanding of Indonesian business customs and practices, and how they effect multi-cultural work relationships.
 
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Nice. But should work on the design...

i know right, but we're working on this front. Last time i checked, INKA currently collaborating with Taiwanese rolling stock co. to build new facilities in Indonesia for building stainless steel electric trains. With this new facility, INKA would be able to use better material and produce better train sets design.
 

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