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on the cultural setting here, especially that there are Indonesian concepts like of jam karet,
or rubber time, that infuriates punctuality-conscious Westerners in Indonesia. Also, they
usually place more value on harmony, understanding, and mutual respect in workplaces,
which sometimes out-weighs the importance of job performance and productivity.
Indonesians also believe that Westerners should make an effort to adjust to their
culture. And so, foreign managers with Indonesian colleagues need to maintain a workplace
whereas individual cases, cultural needs and religious obligations should be willing to
consider. Likewise, Indonesian managers should also be willing to make any adjustments to
working in an international company. Because in Indonesian business culture, sensitivity to
the needs of the employees is one management area that is greatly stressed.
4. How does the population appear to be stratified?
Aside from imbalance in population distribution in Indonesia, there is unfortunately
another obvious disparity. In all the regions of the country, the socio-economic differences of
the people are evident. The wealthy elites are at the top of the social structure, an
increasingly demanding middle class below them, and an impoverished majority at the
bottom.
5. What are some business opportunities in Indonesia for foreign direct investment?
Business opportunities in Indonesia for foreign direct investment include
agribusiness, the automotive industry, business and financial service, 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.
Reference(s):
Deresky, Helen, (2013) International Management: Managing Across Borders and Cultures
Text and Cases, Pearson, Global Edition, 8/E.