SBA -- a meeting place for Swedish companies in Indonesia

SBA -- a meeting place for Swedish companies in Indonesia

Swedish business has a long history in Indonesia.

Ericsson, the worldwide telecom giant, established an office in Jakarta over 90 years ago.

They have since been joined by many others and today all major Swedish companies are represented in Indonesia.

In 1999, representatives of the Swedish companies, like so many other national business groups, formed an association, SBA or the Swedish Business Association, which is currently chaired by Per Brandt.

Brandt is also the president director of PT Perstorp Bumi Raya, a joint-venture company producing raw plastic material in Indonesia. He has worked in Indonesia for seven-and-a-half years and knows the language and the culture of Indonesia quite well.

The following is his view of SBA's activities in Indonesia.

What is the purpose of SBA?

The main idea of SBA is to function as a meeting-ground for Swedish companies with activities in Indonesia. We can get together and exchange experiences and ideas about business, investments and the like here in Indonesia.

We also strive to have continuous relations with the Indonesian authorities as well as the Swedish authorities represented in Jakarta, i.e. the embassy and the Swedish Trade Council. What kind of activities does SBA have?

Well, we have regular meetings where we, in a relaxed atmosphere, come together and exchange views and opinions about the business climate here in Indonesia.

We usually invite a speaker, many times an Indonesian, who speaks about different topics related to business, economy and finance. This, I think, is really important for us since it gives us a better understanding of the country in which we work and live. We also have a newsletter for our members.

Besides that the embassy and the Swedish Trade Council arrange lunch meetings for the members of SBA once a month.

There have been many questions about the business environment in Indonesia since the crisis and especially in the last year. What is SBA's view of the business climate in Indonesia?

For obvious reasons, it is rather difficult for me to speak on behalf of all the members of SBA, since they represent a number of different types of companies. Some are selling products and those products can vary from pure consumer products to products directed more toward the production sector of the Indonesian economy.

And then there are some companies that produce and sell their products here. So the spectrum of activities is quite broad, which means that different companies have different experiences in doing business here.

However, in my own view, there are of course at the present a lot of questions and worrying signs that need to be clarified in order for investment to return to Indonesia to the same extent as a couple of years ago.

For instance, foreign companies wanting to invest in Indonesia today could face problems in getting foreign bank credits for their investments. This is due to the fact that many foreign banks feel that there is too much uncertainty in doing business in Indonesia. A lot of these insecurities and question marks can be found in the legal system here in Indonesia, and also in the frequently expressed fears about what will happen after the decentralization process is completed.

However, I do not share this rather gloomy view, even if I do share some of the concerns that a lot of people from the business community have. I think that there are rather good opportunities for foreign companies to invest and do business in Indonesia today. I think it is much easier, concerning the formal procedures, to invest in Indonesia today compared to a couple of years ago.

However, what every company should be aware of if they want to start an operation here, is that it takes a lot of know-how. You have to know how to do it and this also requires patience and a knowledge of Indonesian society. Looking at a more long-term perspective, I think that Indonesia has a lot of possibilities to attract investors. The business climate is rather good, there is a lot of potential in different markets and the human capital is a great resource. I especially think that these possibilities should attract more Swedish companies to invest in Indonesia.

In what sense do you think that Swedish companies especially should invest here?

"I have discussed this issue with some of my Swedish colleagues from other companies here in Indonesia, and we share the notion that there are many cultural similarities between Swedes and Indonesians when it comes to issues such as cooperation and loyalty.

Of course, there are also lots of cultural gaps in, for example, how Swedish managers and personnel act compared to Indonesians in similar positions. But you can always find differences between people, even those living in the same country. What is important is to try to see the similarities without disregarding the differences.