Case Study Iia Australia and New Zealand: Doing Business with Indonesia

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CASE STUDY IIa Australia and New Zealand: Doing Business with Indonesia There are thousands of Australians, both individually and as members of organizations, who share trade and education with Indonesia as do New Zealanders. Yet, though geographically part of Asia, citizens of Australia and New Zealand are members of cultures very different from any other in Asia. As increasingly they seek to trade in Asia, so also do they need to learn to manage such differences; and doing business in Indonesia is a good example. Travelling time by air from Perth, Western Australia, to Indonesia is slightly less than four hours, yet the cultural distance is immeasurable. In January 2007, the Jakarta Post reported GDP growth had risen to over 5%. Consumer…show more content…
Some cross-cultural behavior, such as patience and courtesy, is no more than good manners. It applies to all interpersonal communication; but in Indonesia, as in the rest of Asia, there is more need to develop a long-term relationship to produce a profit than there is in Australia or New Zealand. Relationships rely on shared expectations—for example, about how first contacts should be made, how appointments should be set and kept, how deals should be closed, how time should be managed (including the Indonesian concept of “jam karet,” or “rubber time,” that infuriates punctuality-conscious Westerners). Sensible but inexperienced international managers seek information that more seasoned veterans can provide. They might be colleagues, business associates, friends, or paid consultants, but in any case most people are eager to give advice. On the other hand, even managers with a highly developed global outlook may have too generalist a viewpoint on international business. They may overlook the need for a local perspective in each host country. Indonesia is one of those countries in which a foreign manager’s home office priorities of task over relationship, of corporate rather than human priorities, may not be the most effective ways to achieve productivity and effectiveness. Indonesian managers usually place more value on harmony, understanding, and mutual respect. It may be sometimes that this

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