An intercultural how-to guide for managers

An intercultural how-to guide for managers

Kunci Budaya: Business in Indonesia, The Key to Success

By Thomas Brandt

goasia Verlag, 1997

252 pages

JAKARTA (JP): It is quite a paradox that Indonesia's rich
culture has acted as a formidable magnet for international
tourists, yet at the same time, it is seen as an obstacle to
doing business in the country.

That, in a nutshell, is how Thomas Brandt tries to explain,
through his book Kunci Budaya: Business in Indonesia, The Key to
Success, the importance of mastering local practices and
understanding local cultures to succeed in business in Indonesia.

An economist at the German-Indonesian Chamber of Commerce,
Brandt lays out what all foreign businesspeople or expatriate
managers, especially those from western countries, need to know
about doing business in Indonesia.

The 252-page book draws mainly from the mistakes, failures and
successes of doing business in Indonesia which Brandt gathered
over three years through interviews with 150 business executives
from Indonesia and eight western countries.

Some of the practical advice, presented with clear examples
and illustrated with photographs and caricatures, is general in
nature in the sense that it basically refers to expatriates
working overseas.

But most of the advice the book provides for various aspects
of managing a business -- being specific to the Indonesian
condition -- should be highly valuable not only to expatriate
managers but also their supervisors at the overseas headquarters.

The book is so specific and detailed in its practical advice
that it devotes a subchapter on how a company must select and
prepare managers to be posted overseas. And why mutual
understanding and trust between overseas headquarters and their
managers in Indonesia is crucial for a successful business.

"In my interviews, I rarely met with expatriate managers in
Indonesia who said they were happy with their headquarters,"
Brandt says.

The book candidly describes how many of the problems faced by
expatriate managers in Indonesia were actually homemade
(headquarters) and lists "how to" steps to avoid such problems
and develop good communications between the head office and their
managers in Indonesia.

It is of great help for new expatriates or companies intending
to operate in Indonesia because most of the practical advice is
not available in management textbooks or taught in business
schools overseas.

Brandt does not pass any judgment on the merits or demerits of
Indonesia's business culture. He simply explains how and why
things are, or should be done in Indonesia in manners which may
not always be acceptable or in line with business practices in
the West.

Several of the chapters and subchapters which should be
particularly helpful for expatriate managers in Indonesia are
those on conflict management within the Javanese culture, dealing
with Indonesian employees, business negotiations, Indonesian
approaches to law and contracts, work ethics, the importance of
personal connections, and how to deal with and court bureaucrats.

The book is easy to digest because each chapter or subchapter
is concluded with an underlining of the most important points to
remember or ponder regarding the topics discussed.

Obviously, the book stops short of discussing in detail
corruption and other forms of illegal payments which are often
needed to facilitate things related to government bureaucracy.

Neither does it want to mislead expatriates. The book frankly
warns that it is essential to hire trustworthy local staff to
deal with the various government departments because dealing with
these bodies can be most time consuming.

It acknowledges that procedures at some departments are
sometimes delayed for a variety of reasons, including attempts to
generate "facilitation money".

Many management consultancy companies in Indonesia, the
largest of which usually have technical tie-ups with foreign
consultants, have also published business guidebooks on
Indonesia, but most of these emphasize the legal aspects.

Brandt's book, which was launched here this month, is one of
the few which emphasize the social-cultural aspects -- the most
important elements to be considered in human resource management
-- which is the core of business management.

The German version of the book made its debut last year but
its popularity as an intercultural manager's guide and the role
of Indonesia as one of the most favorite places of foreign
investment in Asia encouraged Brandt to present an English
version.

The enthusiastic response to the book can also be noted from
the corporate sponsorship behind its publication, which includes
almost all familiar conglomerates from Europe. The sponsors
include ABB, BASF, Ericsson, Hoechst, Krupp AG, Merck, Siemens
and Schering.

-- Vincent Lingga