Investing and operating in Indonesia can be very profitable and rewarding, but like many developing countries, there are also many pitfalls. Indonesia can be a challenging place to do business, therefore it is vital to be advised by seasoned professionals in order to navigate the minefield of potential obstacles. For example, Indonesia ranked 126 out of 180 in 2008 in a CORRUPTION PERCEPTIONS INDEX by transparency international.

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Although improved from 143 in 2007, it is still an endemic problem. The current administration has made targeting corruption one of its main goals and this was the driving force behind the recent improvement.

Another area where businesses encounter serious problems operating in Indonesia is the amount of bureaucracy and red tape often involved. For example, according to a the June 2008 'Doing Business Rankings', Indonesia ranked 129 out of 181 for Ease of Doing Business, ranking below places like Nigeria and Morocco.

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These time periods can be significantly reduced if you have experienced advisors who understand how the process works and can act expeditiously on behalf of your firm.

The business culture and way of doing business can be very different in Indonesia to most first world countries. Understanding cultural nuances and being able to correctly interpret gestures and signals is crucial in building business relationships and establishing trust in Indonesia which can often take more time here. Many common customs or business practices common in the western world could be viewed as disrespectful in an Indonesian context.

At IndoAdvisors, we can assist you in this area and provide useful tips to help you overcome the cross-cultural differences that may affect business partnerships and suggest practical strategies for doing business more effectively with Indonesian counterparts through the following areas.

• Provide a better understanding of your Indonesian colleagues and a greater awareness of Indonesian business etiquette and attitudes in the workplace in areas such as ethnic diversity, hierarchy, rules, and relationships.
• Assist you to develop stronger working relationships with Indonesians and inform you as regards management and working styles and how to adapt business approaches.
• Prepare for Indonesian business meetings as regards decision making processes and negotiation styles.