Subtle Giant

Not long ago, an American waited for months for word from Jakarta that an important transaction had received necessary governmental clearance there.  His colleagues in Jakarta were vague on the telephone and in correspondence about why the clearance was taking so long.  He finally learned that one of the Indonesian links in the transaction chain had delayed paying an excise tax that was due.  His colleagues had been reluctant to identify the problem in their communications for fear that any criticism of the Indonesian would be overheard or reported and might further complicate the problem  —  or that the reluctant link would demand more money to complete the transaction.

In Indonesia there is much that goes on  —  or fails to go on  —  that a foreign business person will never hear about, even one with good communicating abilities.  This is certainly true when long distance communications are involved.  It is also true for foreigners who live and work in Indonesia.  For Indonesians, there is more to be gained by subtlety and indirection than by clear communications.  A corollary is that there is often no "sticker price" on products and services in Indonesia.  The price of most things is arrived at by negotiation.  Even if prices are stated, they can often be negotiated downward.  As Indonesians like to say, "Anything is possible"  —  for a price or other consideration, that is.

[Tip  —  Interpretations:  Don't take things at face value in your communications with Indonesians.  Tactfully press for clarification.  Develop relationships with people in Indonesia upon whom you can rely to assist you in interpreting and delivering communications in Indonesia.]

On a small scale, the value of action or inaction is found in favors and small payments made to officials at lower levels of government to carry out, or to refrain from carrying out, their responsibilities.  For example, imported goods are often not cleared by customs until a customs official receives something of value from an importer, and a licensing infraction sometimes becomes a legal prosecution unless a court official is paid to overlook it.  On a larger scale, various permits and contracts seem never to materialize unless payments are made to a person of influence.  While payments like these occur throughout the world, in Indonesia the practice is cultural, part of a tradition of honoring important personal relationships, spreading the wealth, and paying deference to one's hierarchical superiors (even lowly bureaucrats are considered superiors since they represent the government).  Low salaries also play a part in the case of payments to bureaucrats.  It is an accepted premise that civil servants derive a portion of their compensation from such payments, not unlike the premise that waitresses and taxi drivers derive a portion of their compensation from tips.

[Tip  —  Local Assistance:  If your own culture prevents you from dealing effectively with the Indonesian value system, establish a relationship with people in Indonesia who are accustomed to the system and can help you accomplish your objectives within the parameters of the country's culture and laws.]

Although most business is done in the capital city of Jakarta, communications are complicated by the sheer size and diversity of the country.  Indonesia is the largest of the Southeast Asian countries, a nation consisting of 17,508 large and small islands (6,000 of them inhabited) stretching over 3,200 miles east to west and over 1,100 miles north to south.  Its geographical expanse is therefore similar to that of Australia or the continental United States.  Each one of its principal islands  —  Java, Sumatra, Sulawesi, Borneo (Kalimantan is the portion belonging to Indonesia), and New Guinea (Irian Jaya is the Indonesian portion)  —  is in itself the size of a small country.  Of its smaller islands perhaps the best known is Bali.

Indonesia's population of 246 million people makes it the fourth largest country in the world, after China, India, and the United States.  Its people are predominantly Malay but otherwise ethnically diverse.  (There are more than 300 separate ethnic groups in Indonesia.)  Chinese constitute a small but economically important minority.  Approximately two-thirds of the population lives on the island of Java where Jakarta is located.  About three out of four Indonesians live in rural areas, and almost one out of two works in the agricultural sector.

The vast majority of the population, about 86%, follows the Islamic religion, and government policies often reflect religious conservatism.  Postal regulations prohibit materials that offend Islamic beliefs.  Various sexually oriented materials are often confiscated by postal authorities on this basis.  In one instance, a video cassette tape of the recent marriage of an American woman (in a Methodist ceremony) was mailed to her in Jakarta from the United States.  Postal authorities refused to release it to her.  The woman guessed that the authorities objected to a scene of the married couple kissing at the conclusion of the marriage ceremony.  Kissing in public is offensive to Muslims in Indonesia.

During the early history of Indonesia, Malay people migrated from the Asiatic mainland, and Indian and Asian kingdoms colonized the region.  Dutch, Portuguese, Indian, and Persian traders plied its waters.  Gradually, the Dutch brought the area under their control as the Netherlands East Indies.  Dutch rule continued for some three hundred years, until the Japanese occupied the country during World War II.  The Dutch returned after the war but were soon ousted by Indonesian nationalists led by Sukarno.  Sukarno's government was marked by political instability and a stumbling economy.  An unsuccessful coup attempt in 1965 led to transfer of leadership in 1967 to General Suharto.  Suharto's administration became increasingly authoritarian and corrupt, and in 1998 - after almost 32 years of rule - he was finally forced from office.  Nonetheless, his administration compiled a remarkable record of economic progress and national unification.

An important factor in the unification of this vast and diverse country has been the government's promotion of five fundamental social principles known as the Pancasila:  Belief in One God, Nationalism, Humanitarianism, Representative Government, and Social Justice.  The Pancasila have been used by the government at times to suppress divisive factions, but there is no doubt that they give the diverse Indonesians a common philosophical touchstone.

[Caution  —  Government Sensitivities:  Although Indonesia embraces many democratic principles, the government is highly sensitive to criticism.  In your communications with Indonesians, be careful not to criticize the government or its officials.  While your correspondents might agree, they will not want to be associated with the criticism.]

Additional resources:

CIA World Factbook: Indonesia