Indonesia is the country with the 4th largest population in the world, accounting for 35% of ASEAN’s GDP. Long-term economic growth combined with political stability help the country on its way to the “five” largest world economies in the horizon of 2040. The high rate of growth is primarily due to domestic consumption, but it is a significantly export-oriented economy. Indonesia plays an important role in world trade in terms of commodity markets – its strength is the export of coal, nickel, aluminum and other mineral resources, and in the agricultural sector, the export of palm oil. After one year of remaining in the category of countries with a higher average income, as a result of the corona crisis, Indonesia fell two categories lower to a lower average income. If the Indonesian government wants to fulfill the goals of the current President Jokowi’s strategic document Vision 2045, dominated by economic growth of 7%, will be forced to speed up some reforms across sectors so that domestic production is competitive and products with higher added value are exported. Despite the clear tendencies towards liberalization, the main constraints continue to be associated with the continued relative closedness of the market, protectionism, excessive bureaucracy and changing regulations. Indonesia remains a relatively centralized economy where the state sector plays a vital role as both regulator and actor. However, with gradual liberalization, the market is opening up to foreign investment, including areas previously exclusively accessible only to Indonesian actors, both in terms of interest in foreign exchange inflows and the transfer of know-how. to make domestic production competitive and to export products with higher added value. Despite the clear tendencies towards liberalization, the main constraints continue to be associated with the continued relative closedness of the market, protectionism, excessive bureaucracy and changing regulations. Indonesia remains a relatively centralized economy where the state sector plays a vital role as both regulator and actor. However, with gradual liberalization, the market is opening up to foreign investment, including areas previously exclusively accessible only to Indonesian actors, both in terms of interest in foreign exchange inflows and the transfer of know-how. to make domestic production competitive and to export products with higher added value. Despite the clear tendencies towards liberalization, the main constraints continue to be associated with the continued relative closedness of the market, protectionism, excessive bureaucracy and changing regulations. Indonesia remains a relatively centralized economy where the state sector plays a vital role as both regulator and actor. However, with gradual liberalization, the market is opening up to foreign investment, including areas previously exclusively accessible only to Indonesian actors, both in terms of interest in foreign exchange inflows and the transfer of know-how. Indonesia remains a relatively centralized economy where the state sector plays a vital role as both regulator and actor. However, with gradual liberalization, the market is opening up to foreign investment, including areas previously exclusively accessible only to Indonesian actors, both in terms of interest in foreign exchange inflows and the transfer of know-how. Indonesia remains a relatively centralized economy where the state sector plays a vital role as both regulator and actor. However, with gradual liberalization, the market is opening up to foreign investment, including areas previously exclusively accessible only to Indonesian actors, both in terms of interest in foreign exchange inflows and the transfer of know-how.

Practical telephone numbers (emergency services, police, firemen, information lines, etc.)

Rescue service

phone: 118, 119

MMCHospital, Rasuna Said, Jakarta

phone: 021-5273473

SOSHospital. Pondok Indah, Jakarta

phone: 021-7506001

MedikalokaHospital, Rasuna Said, Jakarta

phone: 021-5261118

POLICE

telephone: 110

Firefighters

telephone: 113

Important web links and contacts

Ministry of Foreign Affairs of Indonesia

www.kemlu.go.id

State press office

www.antara.co.id

The Jakarta Post newspaper

www.thejakartapost.com

ASEAN

www.asean.org

Addresses of important institutions

KADIN – Indonesian Chamber of Commerce & Industry

Menara KADIN Indonesia 29th Floor

Jl. HRRasuna Said X-5 Kav 2-3 Jakarta 12950

Phone: +62-21-5274484-86 Fax: +62-21-5274486

Email: [email protected]

Website: KADIN-INDONESIA

NAFED – National Agency for Export Development

Dharma Niaga Building 5th Floor Jakarta 10160

Phone: +62-21-344 8164 Fax: +62-21-385 8850

Email: [email protected]

Website: NAFED (temporarily down)

National Coordination Board for Investment Gedung BKPM

Jl. Just. Gatot Subroto No. 44 Jakarta 12190

Phone: +62-21-525 2008-520 4165

Fax: +62-21-522 7609

Website: BKPM

Association of Indonesian Importers GINSI (Gabungan Importir Nasional Seluruh Indonesia)

National Importers Association

Oil Center Building 1st Floor Jakarta 10350

Phone: +62-21-398 37 395 – 97

Fax: +62-21-398 37 394

Association of Indonesian Export Enterprises GPEI (Gabungan Perusahaan Ekspor Indonesia)

Indonesian Exporter Association

Oil Center Building 1st Floor Jakarta 10350

Phone: +62-21-398 37 395 – 97

Fax: +62-21-398 37 394

The Ten Commandments for Doing Business with Indonesia

The PaulSourcing agency has prepared ten recommendations for doing business with Indonesia for Czech entrepreneurs interested in business relations with Indonesia.

1. Business etiquette and the course of negotiations Following the rules can help to establish contacts successfully. Addresses Bapak or Pak (Sir) or Ibu (Madam) are universally used when addressing an Indonesian partner. Both men and women shake hands in welcome. If any type of drink is served, it is essential to wait until the host gives the order to consume it. It’s better to keep it generally formal until the Indonesian counterpart decides to go for a more relaxed approach overall.It may happen that during the first business meeting, business matters are not discussed at all, but the way is prepared for further consultations. The conversation is conducted on general topics and it is recommended to avoid personal matters. Instead of using the word ” no” directly, most Indonesians prefer to say ” belum ” which means “not yet ”.Due to the tropical climate, social etiquette allows men to put away their jackets and move around in just a shirt and tie. Many customs have their origins in Islam. It is not customary to drink alcohol during meetings and the day is divided into several parts between prayers.
2. Communication The official language is Indonesian (Bahasa Indonesia), the basis of which is Malay supplemented and modified by local languages ​​and dialects. In addition to it, local languages ​​are used (Javanese, Sundanese, etc.). The language of foreign trade is English.
3. Making an appointment It is important to be on time for a meeting, although it is very common for it to start later than agreed. Indonesians expect punctuality from their business partners and never comment on their own tardiness. Working hours start relatively early in both private and state offices. They work from Monday to Friday, unlike other Muslim countries.
4. Business cards and their presentation The presentation of business cards that follows the presentation has its own rules. A lot of attention and concentration is required. The business card must be presented to each person attending the meeting, and upon receipt, they are carefully studied and held with both hands. It must never be written on and kept in the back pocket of trousers. Bilingual business cards in English and Indonesian are also recommended.
5. Patience Indonesians are used to haggling over prices. The price is usually contractual in cases where it is not stated. It takes a lot of patience from a businessman who wants to succeed in Indonesia, and most business negotiations on terms and conditions take longer than planned. There definitely needs to be more than one business meeting.
6. Personal relationships and contacts In general, it can be said that without personal contacts and face-to-face trading, it is very difficult to create an effective business. It is necessary to build personal relationships with each other. Indonesians speak quietly and in a low tone. Loud people tend to be considered aggressive. It is necessary to remain polite and you may learn what they think and want to hear. If an Indonesian starts to act cold and withdrawn, it is obvious that there is some serious problem.
7. Dangers and inconveniences Overall, the country is safer than many European cities. But as everywhere in the world, it is necessary to face pickpockets and other thieves. If you protect your valuables and take precautions, there is little chance that you will be robbed. In case of any problems, it is really necessary to report everything to the police. The fact that the country is at a decent level in this regard is evidenced by the mass development of tourism and the increase in the number of tourists in recent years.
8. Creditworthiness and verification of the company In order to establish long-term business relations, it is necessary to verify each Indonesian company. Her creditworthiness, seriousness, or whether she has any references. This is the only way to avoid potential problems before the transaction is completed. Using the services of the foreign representative office of the PaulSourcing agency in Jakarta will help you to do this.
9. Perfect preparation for the negotiations Although you prepare the documents and include all possible arguments in the preparation for the negotiations, especially for price negotiations, you demonstrate knowledge of the competition and the overall market situation in the given segment, it may happen that you will be surprised in some way by the Indonesian side or surprised. Arm yourself with patience and be friendly and optimistic.
10. Engaging professionals Due to the significant geographical distance and vastness of Indonesia, it is quite difficult to establish and develop business activities without a physical presence in the market. Of course, in many cases initial business contacts take place through normal methods of communication. The most effective form seems to be the use of comprehensive services offered by PaulSourcing’s foreign representative office.