By now many people are aware that Indonesia is the powerhouse of South East Asia the 4th most populous nation on the planet in a few decades the 4th largest economy, has over 17,000+ islands, and an abundant supply of young human capital, raw materials and natural resources such as nickel which it leads the global market.
Background
Many may also remember during COVID-19 how de-globalization-proof Indonesia as a nation is. It is one of the few nations in the world that if pushed wouldn’t need to solely rely upon imports to feed, clothe or empower its population and one of the fastest economies to bounce back post-COVID over 5% pa growth.
On the scale of trajectory, few would argue that Indonesia’s under, President Jokowi has been one of the most capable of recent times, successfully steering and positioning Indonesia as the inclusive, powerful Statesmen of South East Asia’s ASEAN (and beyond). Boasting large infrastructure projects, and inclusivity of foreign investment, the nation has been empowered through a very formidable frontline cabinet.
Transparency
With the OSS online system as an essential part of the larger Omnibus Law has begun to create clearer systems and practices in place which make it easier more reliable and transparent to set up and conduct business in Indonesia.
There are always challenges of course – I am reminded of the important statement “nowhere has everything, but everywhere has something”.
Recent Wins
The recent outcomes of visits by Elon Musk and Tim Cooke, CEO of Apple to count but a few simply further endorses Indonesia, is a place of opportunity.
How To Do Business?
But how do foreign businesses prepare themselves to join and work together with this powerful nation at the grassroots level?
Multinational companies such as those mentioned prior have their networks already established. But how do medium to large-sized companies join, integrate, partner with or help to empower Indonesia into the future?
The clue is in the words I used…contribution, partnership, collaboration and integration.
History
When you study the history of Indonesia, like other nations in the world, you can see one of colonization; people from one side of the world believe that things should be run or done differently which created a varying array of outcomes.
Indonesia is a sovereign nation with its own constitution, laws, cultures and customs. The national motto of Indonesia is UNITY IN DIVERSITY an understanding we all have different strengths to contribute to each other and the nation-at-large.
Inserting into business (medium to large sized)
Embassies
A great place to start – most countries have them and they can supply a softer landing, and a sense of belonging and are able to supply some useful connections, and helpful advice on a more elevated plain.
Chambers of Commerce – KADIN
With a special dispensation from the government and access to it, there are over 500 branches throughout Indonesia and they help bring together industries, delegations, trade organizations and through direct communication and events
Associations
Rotary club is present in Indonesia, Apindo, Gapgindo which may be slightly more challenging for foreigners not familiar with Bahasa Indonesia but can be very useful
Well-known International Consultants
Can give great advice, and create valuable feasibility studies – which may potentially struggle with the local engagement for business and also may represent quite an investment.
Local Networks
This is an area which is the domain of smaller key consultants, and advisors which can provide significant ROI, ROT – Return on Time! Many of these networks are invite-only, you will only find them through having the right connections. The advantage is that they form very up-to-date dynamic connections with local networks of influence. These networks are key for small to large-sized businesses they have the latest information, and intelligence on the market – often before the aforementioned larger bodies do.
Local Partner
This really could be number #1 on the list. A local Indonesian partner with the appropriate background, knowledge, and expertise pertaining to your industry, someone you can trust and helps you to walk you through the process mentally, emotionally and financially.
Where can you find an appropriate local partner/s?
Associations, industry-aligned events, chambers of commerce or through your respective embassy – are all good places to begin but can take some energy and time. Some of these key groups are perhaps not easily accessible too. There are also key candidates found in private networks and groups but you need to know your way around them and be accepted in the first place!
In Summary
Whichever you decide, please come with good intentions, a mindset of contribution and a beginner’s mind. Listen more than you speak, and learn about the culture, background and philosophies – eventually, that will include the language (my Bahasa Indonesia is still a work in progress).
Robert Ian Bonnick of RiB & Associates
Growth Strategist & Gateway to Indonesia for Foreign and Domestic Organizations
