Two-thirds of the country is tropical rain forest. Sixty percent of the total population lives on the islands of Java, Madura and Bali, accounting for only 7 percent of the total surface of Indonesia.

By the end of 1949, Achmed Soekarno became the first president of the Republic of Indonesia after 350 years of Dutch rule. Jakarta, on the island of Java, became a lively modern business center.

Language

Soekarno tried to unite the much-divided country by introducing Bahasa Indonesia as the official language for the entire country. In total, however, 300 different languages and many more dialects are spoken in the country.

Religion

Islam was introduced in the 7th century. Since more then 88 percent of the population is Muslim, be aware of the religion of the person you do business with. Usually the name indicates his religion. Avoid offering alcohol while having a drink together.

Do not invite your Muslim business partner for lunch during Ramadan. Make sure that the right food products for Muslims are served when you eat together.

Do not expect Muslim women to be open in the company of men. Western women should dress properly in the company of Muslim men.

Doing business on the islands

Each island has its own history and culture and must be considered an independent society.

Often it is only the central government, far away in Jakarta, and the official language Bahasa that indicate that the island is a part of the Republic of Indonesia.

Due to their limited size and the physical isolation, island societies are inward looking. Influence from the world outside is looked upon with suspicion.

People are dependent on each other for the harmony in their daily life. Everyone is either related to one another by family or by economic ties. Face-saving is a precious art in small societies.

Be aware that as a foreigner you are not informed about the unwritten local laws. Invest time to build a large network and to get to know as many people in as many disciplines as possible. One person may be president of a company and hold several important social functions.

At the same time, he may be the head of a large extended family responsible for the economic well being of the family members of the group.

Many jobs, in family companies as well as in multinationals, may seem unnecessary to westerners but they do serve the purpose of the group - harmony and economic well being

Hierarchy and company culture

There is a strong hierarchy within companies. Opinions and initiative, if not asked for by superiors, are not appreciated. Decisions are made at top level.

You will only be trusted when introduced by well-respected people or if you provide a list of VIPs you personally know. Names-dropping is common practise, and it works well.

Communication

When doing business in Indonesia, things such as how many stars your hotel has and what type of car with driver you choose are important to the success of your meeting. Showing your status is a form of non-verbal communication.

Once at the meeting table, western business people like to get to the point of business within 10 minutes. Indonesians may talk about for an hour or more about different things before the actual subject is discussed.

Do not get frustrated, but calculate extra time for your Indonesian appointments.

Indonesians usually speak with a soft voice and often smile and remain extremely polite in all circumstances.

This is no indication that they agree with you. A smile has many positive and negative meanings.

There are many ways to say no in Indonesia. In order not to let you lose face, you will not hear the word "no". A person will let you know in another way that he does not agree with your proposition. Be open to this.

Avoid looking people straight in the eyes. This may be understood as very aggressive or extremely impolite.

Jam karet or rubber time

In Indonesia, deadlines are flexible. It is wise to avoid long-term planning.

The further away from Jakarta you travel, the more relaxed people become about time.

While living on the islands, one is dependent on the transport of goods and people via air or via sea. Also weather conditions are important. If any important documents are needed they will have to be signed by the central Government in Djakarta. This may take months depending on where your project is located.

On Java, people believe that everything in life has a cosmic order. Speeding up a process may cause disaster.

Time, after all, is circular - it is a part of life. For Indonesians, it is difficult to understand the western, linear concept of time. Time does not bring money, good relations and harmony do.

Social life

The social life of an expat is usually completely separate from the local life. Integrating socially is extremely difficult and often not very useful.

Generally, the quality of life in Indonesia is wonderful. The country is beautiful and extremely interesting, with more than enough things to do and see in your free time.

Try to build a good social life with other expats. Invite Indonesians to your official parties; they will be very happy to attend. You will be invited to their parties. But know that relations do not go beyond formalities.

If you notice that a woman does not want to shake hands, do not insist. She may avoid contact for religious reasons.

Avoid serving food with your left hand. This hand is used to clean when going to the bathroom.

Always be friendly and warm, and realize that Indonesians do not act on their own behalf but always on behalf of their entire group.

Cross-cultural consultant and trainer Eleonore Breukel is the founder of Intercultural Communication (www.intercultural.nl), based in the Netherlands.

December 2001