{prltitle}

Gabriel Tabalujan- Indonesia A Business Opportunity for Foreign Companies

Business people and entrepreneurs from around the world are now focusing on the various industry sectors in Indonesia to expand their businesses. The successful economy and potential human resources have created a lucrative national market for businesses dealing with various goods and services, making it possible for one to easily set up a flourishing trade or business in this region. Indonesia also sees many foreign investors looking to finance new ventures and start up companies in the country giving businessmen all the more incentive to do business with Indonesia. There are a number of business opportunities available in the country in fields like agriculture, fashion and technology. Since the early days of spice trading, Indonesia has been known for its spices, seafood and other food-based exports. Traders from other countries looking to set up an import-export business here will be able to establish a freight enterprise and forge successful trade relationships between Indonesia and their home country. Another important trade opportunity in Indonesia involves handicrafts, as the country has many artisans who create intricate piece of artwork for export purposes. Indonesia encourages this form of trade as this helps the economy of the country and boosts an awareness of the region's culture for tourism. The economy of Indonesia is currently dependent on tourism and as a result there is great demand for the improvement and enhancement of the existing infrastructure for tourists. Getting involved in airport construction and maintenance is a good business opportunity in Indonesia as foreign investors are allowed a 95% ownership of companies that build public airports.
Some international business people also choose to start restaurants, hotels and other entertainment centres like malls, nightclubs and cafes for tourists, bringing in their expertise and adapting it to suit the traditions and culture of Indonesia.
Apart from these industries that provide one with good business opportunities, there is also a need for IT professionals, various health care services, doctors, engineers, architects and industry professionals in other essential sectors in Indonesia. These sectors can provide ample business opportunities for the discerning investor and entrepreneurs looking to set up job placement companies here.
Indonesia offers many business opportunities for worldwide buyers and investors interested in Indonesia's B2B marketplace. Our new Indonesia business opportunities section includes these categories: Indonesia Industry Indonesia Hi-tec Indonesia real estate Indonesia Services Sundry
________
The Government's reform program, including measures addressing
corporate governance and the legal system, is changing the
business culture.
The Indonesian market rewards Australian businesses that take time
to develop strong personal relationships and community ties.
Managing a business in Indonesia requires a sound understanding
of the culture's influence on hiring, training and managing staff.
Navigating Indonesia's legal and regulatory system is best done with
the aid of a notary; consulting a notary when setting up a company,
obtaining approval for foreign investment and drafting a contract is
strongly advised
Operating successfully in Indonesia requires patience and an understanding of influences affecting
business culture, and legal and regulatory environments. Many promising changes underway in the
Indonesian business environment eventually should help Indonesia emerge as an attractive investment
destination and profitable market for Australian companies.
This chapter analyses cultural influences on business and identifies ways to use these to commercial
advantage. It assesses the possible impact on the commercial environment of reforms introduced
since the financial crisis. Finally, the chapter analyses significant aspects of the changing regulatory
and legal environment relevant to undertaking business.
_____ ______ __ ______
Businesses understanding and capitalising on cultural influences are more likely to succeed than
those simply coping' with them. This section identifies how foreign firms can use local approaches to
their advantage.
Investing in relationships is critical to succeeding in Indonesia. Establishing a relationship requires
time, preferably with face-to-face contact with a person of similar age and status. Demonstrating
loyalty and trustworthiness is critical to maintaining a relationship. The longer term returns of investing
in relationships can be significant and include:
expediting bureaucratic processes where the relationship is with a government official
accessing information and distribution networks
opening joint venture opportunities, especially in manufacturing.
Relationships can determine many facets of commercial life, including granting credit, placing orders
and awarding contracts. A longstanding obligation between two people can affect commercial
outcomes. Showing patience and flexibility in commercial dealings builds trust and improves the
chances of a successful outcome; contrasting expectations can have adverse consequences.
Australian business people should not force' a relationship, or overestimate its depth.
Variables including age, gender, educational and marital status, also affect how easily personal and
commercial relationships are formed. Western firms may find it more productive to send older, more
mature executives rather than young personnel to negotiate or work in Indonesia. Men especially are
not considered mature until they are 40 years old, and younger people can be excluded from decision
making processes. In all spheres, younger people defer in language and attitude to older people,
even if the age difference is negligible.