Top 5 Key Success Factors for Succeeding in Business in Indonesia

Hey there! I am sure you are considering Indonesia as a market and yes you’re right! It cannot be ignored. Officially with a population of about 260 million, a growing middle class and a pyramid shaped population demogaphic, this country yields a lot of promise for businesses.

But while it is huge and promising, most of our clients complain about WHY it can get so difficult and slow to get into the market!

These are 5 most important factors we find are most important to be successful in the market in Indonesia with our experience.

1. Building Strong Relationships

In Indonesia, business success is heavily dependent on personal relationships. Trust and mutual respect are the foundations of any business deal. Yes zoom calls are good, but only can get you so much.

To build strong relationships, invest time in networking and developing genuine connections with local partners, clients.  You HAVE to fly to Indonesia, meet partners! The Javanese people in general are warm and more relational. Plus being there gives them a sense of security and trust.

Meeting people gives you a few key important insights and levels up your business in 2 main ways ;

-          Market feedback

-          Develop new contacts

-          Develop trust among potential partners

 2. Spending Time in Indonesia

Spend time in the market. In our fast paced society it seems that very minute has to be productive but not so!

In our work, we have spent time walking in malls, meeting with people, going for “un-useful” occasions which on the contrary have brought a lot of benefit.

We get to understand consumer behaviour, understand demographics. Jakarta for example is split into North, South, East and West. And each area has a unique set of people as well as behaviour and spending pattern.

For one, people tend to question less when spending in South Jakarta as compare to North Jakarta.

3. Cultural Sensitivity

Indonesia is a nation of diverse cultures, languages, and traditions. Understanding and respecting this diversity is crucial. Familiarize yourself with local customs, religious practices, and business etiquette.

For instance, in Java, where most business is conducted, hierarchy and subtle communication (meaning you have to find an interpreter) are important.

Being aware of these cultural nuances and adapting your approach accordingly can prevent misunderstandings and build stronger connections with local stakeholders.

For one a client with a book had to remove their illustration of a pig when entering into the market.

5. Localisation

Understanding and adapting to the local market is critical for success ! This is not a cliché! If your product is too expensive, scale the size down or make it affordable through easy payments with local payment providers.

In particular Singapore companies have issues with getting into the Indonesian market because Singapore has homogeneous pricing whereas Indonesia demands tiered pricing.

Perhaps the holy grail of any product or service is the mid to mass market. That requires a complex mix of pricing as well as marketing strategy.

Conclusion

Succeeding in Indonesia requires more than just a good business plan. A matrix of these factors will definitely help plus flexibility and communicability with your partner.

If you want to find out more about how we have helped companies grow in Indonesia, contact us at Marcus@curtconsult.com 

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 ABOUT US

Curt & Co Pte Ltd is a consulting company started amongst a group of business owners who were looking for a consulting company themselves for advice !

 Our offices and our focus markets are in Philippines, Indonesia, Singapore, Vietnam and Malaysia. With clients ranging from 1 man operating SMEs to listed companies, we are proud to have helped our clients across different industries gain market entry into the South East Asian region.

Contact us at marcus@curtconsult.com if you want to talk!