Foreign executives are increasingly recognizing the importance of cultural intelligence in achieving successful business outcomes in Indonesia. Research indicates that negotiations conducted with cultural sensitivity are 65% more likely to reach favorable conclusions and result in more durable business relationships.
Key cultural considerations include understanding Indonesia’s relationship-focused business environment, recognizing hierarchical decision-making structures, and appreciating communication styles that emphasize harmony and indirect expression of disagreement.
Particularly important is the concept of “muka” (face), which requires careful attention to preserving dignity and avoiding public disagreement, even during challenging negotiations.
“Many otherwise promising business relationships falter not because of commercial disagreements but due to cultural misalignments,” explains Dewi Sutanto, Cultural Intelligence Director at ProSpace Indonesia. “Investing time in developing cultural understanding typically delivers exceptional returns.”
ProSpace Indonesia provides comprehensive cultural intelligence training programs for executives entering the Indonesian market, including customized workshops, coaching, and in-market orientation.
For assistance developing cultural intelligence capabilities, contact ProSpace Indonesia at +62 877 8887 7678 or email info@prospaceindonesia.com. Follow @prospace.indonesia on Instagram for insights on Indonesian business culture.
