INDONESIA. Group : Lucky7 Felicia Gojali Hajime Kato Kenichi Yamasaki Sakshi Chawla Thanat TengAmnuay. Country Culture Spotlight

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2 Country Culture Spotlight INDONESIA Group : Lucky7 Felicia Gojali Hajime Kato Kenichi Yamasaki Sakshi Chawla Thanat TengAmnuay Cross-Cultural Management

3 Agenda Introduction Cultural Overview Communication Style Business environment Business Etiquette Summary

4 Introduction Video 90 seconds

5 Introduction Religion Group Ethnic Group Muslim is majority The biggest number of Muslim in one country Around 490!! Javanese is majority

6 Introduction 4th 740 Languages (Indonesian) Rainy and Dry Seasons

7 Geographical Features Area : 1,904,569km^2(15 th ) More than 17,000 islands 3 time zones 5 main islands

8 Capital: Jakarta 10M population Metropolis Heavy traffic Jam!!

9 Traditional Cloth: Batik Batik is a method of dyeing cloth and of making it resistant using wax

10 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.

11 Transportation Ojek Motorcycle taxi Fare needs negotiation in advance Angkot Bus without bus stop

12 FUN FACTS Fast Food 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

13 FUN FACTS Fast Food Answer is C : Every fast food stores sell Chicken with rice

14 Cultural Overview 5 Indonesian core cultural values Family and hierarchical structure Conflict avoidance Subjugation to nature Saving face Relaxed time perspective

15 Cultural Overview Hofstede s Cultural Dimensions Indonesia India Japan

16 Cultural Overview Hofstede s Cultural Dimensions Large Power Distance Collectivism Low Masculine Medium Low Uncertainty Avoidance Short Term Oriented

17 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

18 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.

19 Cultural Overview Collectivism society Gotong Royong (joint bearing of burdens) Extended-Family It is common for Indonesian to help community and neighbors with public works.

20 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.

21 Cultural Overview Femininity society Family matter

22 Cultural Overview Medium-Low Uncertainty Avoidance Asal bapak senang (Keep the Boss Happy) Musyawarah (Consensus decision making) Indonesian try to avoid risk of losing job by trying to keep the boss happy. ikhwanabdillah.wordpress.com

23 Cultural Overview Medium-Low Uncertainty Avoidance Asal bapak senang (Keep the Boss Happy) Musyawarah (Consensus decision making) In decision making process, Indonesian will ask for everyone s opinions and try to find the best solution that everyone hapy. mgbkmalang.wordpress.com

24 Cultural Overview Short-term Oriented Society Saving Face Conflict avoidance Concept of Saving Face is to avoid embarrassing others in the public.

25 FUN FACTS Redenomination current units (rupiah) How many digit will be deduct from Redenomination? after redenomination A 0 B 00 C 000 D 0000

26 FUN FACTS Redenomination current units (rupiah) Answer is C: 3 Zeroes will be deducted after redenomination 10,000 10

27 Communication Style Conversation - Common questions 30 seconds

28 Communication Style Personal Space and Social Space - Friends and Family : cm ( 2 4 feet) - Business associates : cm ( 4 10 feet) Eye Contact - Direct eye contact should be avoided in general

29 Communication Style Display - Indonesians are good at hiding their emotions - Indonesians prefer indirect expressions 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.

30 Communication Style Things to talk about - Indonesian value family highly

31 Communication Style Gestures to avoid - 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

32 FUN FACTS Rice Consumption What is the Indonesian rice consumption per person per year? (Kg) A B C D

33 FUN FACTS Rice Consumption Answer is A : Individual Indonesian consumes rice 139 kg per year. More than 2 times compared with Japanese Indonesia China Malaysia Japan

34 Business Environment Fast Growing GDP

35 Business Environment Industry in Indonesia

36 Business Environment Public Holiday 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: Average: 15 days per year New Year Chinese New Year Labor Day Independence Day

37 Business Environment Religious holiday allowance (THR) 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

38 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

39 Business Environment Eid al-fitr important religious holiday celebrated by Muslims conclusion of days of dawn-to-sunset fasting Eid al-fitr tradition in Indonesia: Mudik/Homecoming Ketupat

40 FUN FACTS Indonesia Flag Which Flag is Indonesia flag? A. B. C.

41 FUN FACTS Indonesia Flag 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 Poland Netherlands

42 Business Etiquettes Link:

43 Business Etiquettes 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 )

44 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

45 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

46 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

47 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

48 FUN FACTS Coffee 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

49 FUN FACTS Coffee 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!

50 Summary 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

51 Terima kasih Thank you Q & A