Indonesian Business Etiquette

There are a number of basic, yet important tenets of Indonesian business etiquette to keep in mind. These include:

  • Avoid using the left hand, which is considered unclean, to pass or receive anything, including business cards and gifts
  • If you are being introduced to several people, it is customary to introduce yourself to the eldest member of the group. It is acceptable to shake hands with women
  • Companies may not respond very quickly to emails, particularly if the sender is not well known to them. Patience is vital to succeeding in business in Indonesia
  • Business relationships are based on trust and familiarity Personal contacts and networks are therefore important in making business deals
  • Indonesians place great emphasis on age, and respect towards elders is expected
  • Avoid touching or reaching over a person’s head, especially that of an older person
  • Watch body language. Hands on hips or folded arms can signify anger.
     

Understanding Indonesian business etiquette

Business Cards

Business cards in English are acceptable; however having them translated into Bahasa Indonesia on the back of your card is an additional sign of respect. The protocol of handing out business cards is not as formal as in other Asian countries. Normally, business cards are exchanged after the initial handshake greeting with the card given and accepted by either two hands or the right hand (never only the left). Make sure to examine the card you receive with positive interest before putting it on the table next to you or in your business card case. Always treat business cards with respect and make sure to have your title clearly listed. 

Forms of address

When formally addressing letters to Indonesians, all names should be written in full. In conversation, the same name is often used in both formal and informal contexts – for example “Mr Sudjana Santosa” or “Mr Sudjana”. But as friendship develops, “Sudjana” would become acceptable. The titles “Drs” (male) and “Dra” (female) indicate a university graduate in social sciences or arts. The title “Ir” indicates a graduate in engineering or technical sciences. “DR” is a PhD and “Dr” is a medical graduate. 

Dining

Indonesia offers almost all types of cuisine from all over the world, from fine dining and specialty restaurants in Jakarta to the many warung and kaki lima (small food stalls). However, due to hygiene concerns, you should be wary of dining at local food stalls. Food in most shopping mall restaurants is relatively cheap. At business dinners, wait for your host to invite you to drink or eat. Do not offer food or drink during the Islamic month of fasting, Ramadan. 

placeholder

Tipping

Tipping is not widespread in Indonesia. Hotels and most restaurants add a service fee to their bills. With taxis, it is usual for the customer to add around 10 per cent. You should always carry lower-denomination currency for taxi fares and small purchases.

Gift giving

The exchange of gifts is not widely practiced in business dealings in Indonesia.

Want to learn more? Explore our other Indonesia information categories or download the Indonesia Country Starter Pack.