Investing in relationships is critical to succeeding in Indonesia. Establishing  a relationship requires time, preferably  with face -to-face contact with a person of similar age and status.

Demonstrating loyalty and trusthworthiness is critial to maintaining a relationship.

The longer term returns of investing in relationships can be significant and include :

  1. Expediting bureaucratic processes where the relationship is with a government official
  2. Accessing information and distribution networks
  3. Opening joint venture opportunities, especially in manufacturing

Relationship can determine many facets of commercial life, including granting credit, placing orders and awarding contracts.

Western firms may find it more productive to send older, more mature executives to negotiate in Indonesia.

 

Sch 2019