Social Analysis Of Doing Business In Indonesia

827 words - 4 pages

Concerning the social part of doing business in Indonesia it is interesting to point out that there are several features which may complicate the Indonesian market entry.

Language Barrier
According to Dean (2001), proficiency in English language in Indonesia frequently causes problems and especially while signing contracts. Even though language is easily understood among educated Indonesians but the average level of comprehension is generally low. In this country English language determines that people, who speak English fluently, got higher education. Nevertheless, it often occurs that even if Indonesians listen to the speaker carefully and comprehend the most part of what was said but still omit minor but very crucial details. However, the complexity is that many Indonesians are generally afraid to ask for repetition of the question they do not understand. They find it a bit confusing and impolite. This case also relates to Indonesians who work as interpreters. On the other hand, Dean (2001) states that repetition of important details during discussion is common and listeners often nod and say "yes" even if it has no relation to the agreement of what was said and just indicates the action of listening. Even so, in Indonesian business environment contracts are drawn up in English which seems to be enough without consequent issues and where needed translated into Indonesian as well.

Social and Cultural Environment
Original Indonesian attitude to society is coming from indigenous population ─ Java, who are famous for their collectivism and values of vertical management system unlike Westerners. For instance, if some worker has high-paid job and high position in some firm, he owes it all to the principal and highly values it. Any changes and movements in network in this case are not welcome and even restricted by rules. It does not seem reasonable if the employee earn more than his boss. In his research Dean (2001) points out that age also plays a great role in socio-cultural environment, as Javanese say the true leader should reach the age of maturity which according to their words is 40. It gives more advantages over young generation if higher education, marital status and skills are obtained. So young people usually feel embarrassed when they start working in comparison with older ones. In addition, high patience is distinctive feature of Indonesians in business environment which is essential during negotiation and it also corners the approach to the job, being late and being not on time for appointment is normal. Unlike Indonesians, Westerners highly value their time in business (Dean, 2000). Finally, Indonesians view Westerners as "breaking through the...

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