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