Cierra Miller
9-16-2014
MGT-446
Australia and New Zealand: Doing Business with Indonesia 1. Using this case and the cultural dimensions explored in this chapter, discuss some of the ways in which citizens of Australia and New Zealand are members of cultures very different from any other in Asia.
There are many differences between New Zealand and Australia, and Asia. Even though New Zealand and Australia are neighbors to Asia they hold very different cultural values. For example, in the Indonesian culture, it’s important to build and maintain long-term relationships to be successful and to produce a profit. In contrast, New Zealand and Australia rely on shared expectation such as how first contacts are made, how deals are closed, and how time should be managed. Another major difference is how business situations are handled. For example, mid-level Indonesian managers may attempt to resolve an issue on their own instead of being the “bearer of bad news” to the boss because they feel that bringing bad news implicates the bearer. In contrast, a Western boss would want their employees to tell them any bad news that they should be informed of because issues that are left unresolved could lead to inefficiency and lose of profits.

2. In what respects is the Indonesian archipelago unique in Asia? Indonesia’s archipelago is unique to Asia in terms of extent and diversity. It has 17,000 islands which span around 3,200 miles eastward from Sabang in northern Sumatra to Merauke in Irian Jaya. The eight major islands in this chain include of Sumatra, Java, Kalimantan (Borneo), Sulawesi (Celebes) and Irian Jaya (the western half of Papua New Guinea). Climate conditions and raw material sources vary from each region of the islands. One unique aspect is that Java and Bali have fertile volcanic soils, elsewhere the land is rich in mineral resources such as oil, natural gas, and coal. 3. What characteristics of Indonesian workplaces are referred to in this profile?
Indonesian workplaces consist of managers who integrate harmony, understanding, and mutual respect values in their management style. In addition, Javanese which refers to self-control, is a strong value that is held not only by Indonesia, but is shared by many other countries of Asia. In the workplace, Indonesian managers focus on maintaining a good relationship with their employees by making considerations for individual cases, cultural needs, and sensitivity for their employee’s needs. In contrast, Western managers mentality is that “time is money,” whereas getting the job done has more precedence over developing a relationship. On the other hand, the Indonesian laid back management style has a downside because it can lead to inefficiency, less productivity and effectiveness. Nevertheless, Western managers who wish to do business in Indonesia must be willing to adjust to the Indonesian management style by being patient, willing to consider individual cases and cultural needs, and being sensitive to the needs of the employees. For example, Western managers should make accommodations for employees to have time off for prayer times or other religious obligations, time off for cemetery visits before Ramadan, weddings, and funerals. Secondly, sensitivity towards employees needs is critical in the Indonesian workplace because self-control is a high value to Javanese. For example, when someone loses their self-control through anger, distress, or confusion, Javanese will usually advise the need to “eling,” meaning to not allow oneself to be overwhelmed by feelings and mixed-up thoughts but to regain self-control. However, Indonesian managers need to adopt some of the Western management styles such as strategic planning and timetable deadlines, efficiency and punctuality, handling conflict, and taking responsibility to maintain harmony. Overall, by intertwining the priority that Indonesian mangers hold over employee relationships and the priority that Western managers hold over job performance and productivity will only lead to sustainability and most importantly, profitably. 4. How does the population appear to be socially stratified?
Indonesia is the fourth largest populous country with a population of over 230 million people. However, the population is sporadic, with urban areas such as the island of Java that holds 60% of the population. There are very few wealthy, below them a majority of demanding middle class, and at the bottom a large number of those who are in poverty. 5. What are some business opportunities in Indonesia for foreign direct investment?
Some major business opportunities in Indonesia for foreign direct investment include agribusiness; the automobile industry; business and financial services; construction and infrastructure; information and communication technology; e-commerce; education and training; environmental products and services; food and beverages; fresh produce; health and medical provisions; mining and mineral services; oil and petroleum drilling; transport and storage; and science and technology. However, to successful conduct business in Indonesia, a counterpart’s major challenge to overcome is understanding the business culture and how to operate in a different cultural setting. After conducting some research on the Australian government department of foreign affairs and trade cite it appears that Australia investment in Indonesia is growing significantly. Australia's leading banks are prominent in Indonesia's financial services sector. ANZ is one of Indonesia's ten largest private commercial banks. The Commonwealth Bank has operated in Indonesia since 1997 and specializes in retail and small business banking and insurance.

Source:

Australian Government Department of Foreign Affairs and Trade. "Indonesia Country Brief." Australian Government Department of Foreign Affairs and Trade. Jan. 2014. Web. Sept. 15 2014 <http://www.dfat.gov.au/geo/indonesia/indonesia_brief.html>