Doing Business in Australia and New Zealand Compared to Indonesia

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ralIndonesia is the largest economy in South East Asia and its growth is improving by the day, it appears to be in the top grouping of emerging markets. Many countries found Indonesia to be the country to invest in and/or being an ideal business partner and good market for their businesses / goods. However, countries from different cultures have vast differences from the Indonesian culture, where it is important to recognize that people from different cultures have are different in a variety of ways, such as different ways of looking at things, different ways of dressing and different ways of expressing personality/goodness. Australians and New Zealanders are increasingly sharing trade and education with Indonesia, even though they are…show more content…
To identify the differences between Australian and New Zealand compared to Indonesia, a Hofstede’s analysis were done to compare the two cultures. Power Distance: In western cultures hierarchy is established for convenience, where superiors are always accessible and managers are able to rely on employees and teams for their expertise. Consultation is expected for both managers and employees and information to be shared on regular basis. Communication is often informal, direct and participative. While in Indonesia, there is dependence on hierarchy, unequal rights between power holders and non-power holders, there is minor to no access to superiors, leaders are usually directive and management makes control decisions and delegations. Centralized power and team members are expected to be obedient to their managers. Employees are expected to do when told. Managers are respected for their position and control is a common thing. Communication is indirect and negative feedbacks are usually veiled. Since the power distance is high, Indonesian workers expect to be clearly directed by the boss or manager, it is a classic Guru-Student dynamic that applies to Indonesia. Individualism vs. Collectivism: Usually western Cultures such as Australia and New Zealand are considered highly individualistic cultures. This translates into a society in which the expectation is that people look after themselves and their
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