Indonesia: Xintiandi of Foreign Trade, an opportunity not to be missed this year

1. What are the demands in the Indonesian market? Is the demand large or not?

Although Indonesia has abundant natural resources, due to its weak industrial foundation and low technological level, a considerable amount of industrial products rely on imports. China's machinery, electronics, chemicals, clothing, plastics, medical equipment, and communication equipment, as well as complete sets of equipment, are all very suitable for the market demand in Indonesia and are also in line with the consumption level of the Indonesian people. If Chinese companies can seize this unlimited business opportunity and increase their efforts in exploration, they may have great potential in the Indonesian market.

At present, Indonesia's population has reached 260 million, which is not much less than the United States, and the overall demand is still very high.

2. What is Indonesia's import policy like?

The import business in Indonesia is only operated by Indonesians and requires registration with the Indonesian Ministry of Commerce to obtain a valid confirmation number (API) with no termination period. Indonesia strictly restricts foreign businesses from conducting import operations. Only legally established foreign-funded enterprises that import self used raw materials and semi-finished products can apply for a confirmation number (APIT) from the Indonesian Ministry of Commerce with their IP identity. In the past, the process of applying for IP identity was complex and required recommendation letters from relevant institutions. Currently, there has been a significant improvement, and generally, the application can be obtained within 7 days of submission.

In May 1985, Indonesia transferred the inspection measures for imported goods upon arrival to the Far East Notary Service (SGS), which implemented them before the shipment of foreign goods. Starting from August 1, 1991, the inspection work was taken over by the state-owned PT Surveyor Indonesia. The pre import inspection regulation was abolished in April 1997.

The Indonesian government stipulates that outsiders are not allowed to engage in import, wholesale, and retail business; As for the definition of an Indonesian company, it is: Indonesian people own at least 51% of the company's shares, and Indonesian people have a majority in the board of directors.

If foreign investors import raw materials for their own factories to manufacture export products, this restriction is not applicable, but they cannot still sell them to others. The best way for foreign investors to sell raw materials or semi-finished products from their overseas parent factories to Indonesia is to have their local partners step in and establish another company, which can not only supply their own needs but also increase their income.

Foreign companies can establish a representative office under the guidance of the Ministry of Trade and Industry to operate in the Indonesian market. This representative office can only conduct promotions, market research, and technical support within Indonesia, so cooperation with import agents is very important.

3. How to find customers in Indonesia?

1> The most influential search engines in Indonesia are Google Indonesia, Yahoo Indonesia, and Bing Indonesia

2> Local Yellow Pages:

https://www.yellowpages.id/

https://www.indonesiayp.com/

3> Economic and trade website:

Indonesian Customs Official Website: https://www.beacukai.go.id/

Indonesian Ministry of Trade: http://www.kemendag.go.id/

Indonesia Central Bureau of Statistics: https://www.fischverband.de/

Summary of Indonesian related trade websites: http://www.shangjuyuan.com/guides/305

Free customs data:

https://hg.smtso.com/?i=6A47CD

4. How to deal with Indonesian clients?

Before communicating with Indonesian clients or going to Indonesia, we need to conduct more research on the client's background, company size, etc.

A notable characteristic of Indonesians is their emphasis on deep friendship, sharing old friendships, and being able to confide in their old friends. For ordinary business clients or friends, although they are also polite and even have a good conversation, it is only a formality, and true feelings are not easily expressed. So when interacting with Indonesians, it is not advisable to have too much hope in one or two meetings.

To deepen your friendship with Indonesians, you can visit their homes. Because Indonesians enjoy guests visiting their homes, and visiting them at any time of the day is very popular. Visiting Indonesian households can increase emotional communication and has become a trick in interacting with Indonesian people. If business negotiations can be conducted at the homes of Indonesian people, it is the best thing to do, as it can eliminate the barriers between the host and guest, and the effectiveness of transaction negotiations is better.

Indonesians don't like people asking for their names. In Indonesian homes, when you see a cute looking child, be sure not to touch their head. If you touch their head, the other person will definitely face away. Talking to them should avoid topics such as politics and religion. Take off your sunglasses when talking to others or entering their homes.

When meeting Indonesian people, you can shake hands or nod. Indonesian businessmen make decisions relatively slowly, and business negotiations usually take a long time. It is best to stay for more than a week. In the business world, gifts are good, especially when exchanging gifts. When visiting, it is advisable to prepare some small gifts for businessmen, officials, and their wives. When invited as a guest, you can bring a bouquet of flowers to the host. The guest does not necessarily have to give gifts, but it is best to say a few thank you words or write a note to express gratitude.

Some etiquette and taboos that you need to know

01

Manners etiquette

In Indonesia, when people sit down, their legs cannot be crossed. If this is necessary, the knee of one leg should be placed on the knee of the other leg. In Bali, when sitting down, your legs should be flat on the floor. If you point your toes or soles at someone else, it is considered an insult to them.

02

Meeting etiquette

Indonesians are friendly and easily accessible. When they meet guests in social occasions, they usually shake hands as a courtesy and meet acquaintances or friends. The traditional etiquette is to use their right hand to hold their chest and greet each other. When making a formal introduction, pay more attention to addressing. Most middle class Indonesians have two names, while many lower class people only have one. Wealthy people usually have long surnames and first names, and only choose a short and abbreviated first name. When addressing people, only their first surname can be used, not the second.

03

Dinner Etiquette

Invited by the host to eat at home, guests should wait for the host's invitation before eating or drinking. During the meal, do not speak much, and leave some food on the plate after the meal. As a guest, one should not make special requests for food or ask for salt or other items.

04

business etiquette

Indonesians pay special attention to giving business cards. When meeting for the first time, guests should give their business cards to the host, otherwise they will be treated coldly by the host for a long time. The business card text should be in English.

When visiting Indonesian businessmen, it is important to bring gifts, and accepting them means taking on some kind of responsibility. Most Indonesians like fruits, cosmetics, etc. Young people appreciate university T-shirts or university logo notebooks. Be willing to accept gifts from others, but do not open the packaging in person. Indonesian businessmen enjoy banquets, and as guests, they should repay others with the same standards before returning to their home country.

05

Main taboos

Indonesians avoid using their left hand to pass things or things. It is taboo for someone to touch their child's head, believing that this is a lack of education. Taboos against mice and turtles. When talking to Indonesians, one should avoid topics such as politics and religion. Naked sunbathing is illegal in Indonesia. When entering holy places, especially mosques, be sure to take off your shoes. Visitors to temples or mosques are not allowed to wear shorts, sleeveless clothing, vests, or bare clothes. When entering any sacred place, be sure to take off your shoes. In Bali, entering a temple requires wearing a belt around the waist. Indonesians avoid whistling at night, believing it will attract wandering ghosts and be beaten. Most Indonesians believe in Islam, so they are not allowed to hold things with their left hand. Avoid eating pork food, drinking strong alcohol, not liking sea cucumbers, and not eating dishes with bones and juice, as well as fish maw.

5. What are the holidays in Indonesia?

January 1st New Year's Day (Hari Raya Nyepi)

New Year's Day, also known as the "New Year", refers to the first day of January in the current Gregorian calendar. But before 1911, New Year's Day was today's Spring Festival, also known as the Summer New Year. New Year's Day is a legal holiday in many countries or regions in the world, such as Chinese Mainland, Taiwan, Hong Kong, Macao, Singapore, Japan, South Korea, etc. China and Singapore both take one day off as statutory holidays, while Japan takes six days off from December 29th before the year to January 3rd of the following year. China and Singapore both take one day off as statutory holidays, while Japan takes six days off from December 29th before the year to January 3rd of the following year. In terms of customs, New Year's Day mainly involves various forms of mutual blessings, with New Year cards being the main form.

February 8th, Maulid Nabi Muhammad

The Holy Eucharist is an important holiday in Islam, commemorating the birthday of Prophet Muhammad. However, the dates for commemorating the Holy Eucharist are different between Sunni and Shia sects. Most ethnic minority Muslims in China are Sunni, so the Holy Eucharist is also an important holiday for ethnic minorities who believe in Islam. The Sunni holy festival is on March 12th in the Islamic calendar, while the Shia festival is on March 17th. It is said that in the past, Muhammad often fasted on his own day of birth (Monday), but now Muslims do not fast on the day of the Eucharist, but instead prepare food to celebrate and tell stories about Muhammad's past.

April 6th, Good Friday (Jumat Agung)

Good Friday, also known as Good Friday, is a day for Christian believers to commemorate the crucifixion of Jesus Christ. It is the Friday before Easter. According to the Bible, Jesus was crucified around 9am on the 14th day of the Jewish calendar in 33 AD and died around 3pm in the afternoon. Jesus alone instructed his disciples to commemorate his death.

May 20th Ascension Day

Ascension Day commemorates the ascension of Jesus Christ forty days after his resurrection. This is confirmed in both the Apostle Creed and the Nichian Creed. As Easter falls on Sunday, this festival is celebrated on Thursday.

On the night of August 11th, Isra dan Mi'raj climbed the sky

Night walking and soaring into the sky (Arabic: الإسراء والمعراج )It refers to a miraculous act of Prophet Muhammad, as recorded in the Islamic classic Quran. According to the Quran, on the night of July 27, 621 (the 17th day of the seventh lunar month), Allah ordered the Heavenly Sage Boleylai to bring the divine beast Blak to Mecca to welcome Muhammad. Muhammad, accompanied by Jebele Lai, immediately rushed to the distant temple (according to legend, it was Jerusalem) by Blake. It is called "night walking". سبحان الذي أسرى بعبده ليلاً من المسجد الحرام إلى المسجد الأقصى الذي باركنا حوله Then, according to some scriptures, Muhammad ascended the Skystone from the Aqsa Mosque in Jerusalem to the Seven Heavens. When Muhammad ascended to the sixth floor, he saw Musa and he bowed three times to Allah. Therefore, Muslims now consider these three prayers as a secondary mandate. When the Prophet traveled to the seventh level, he saw heaven and the fire prison, and also met Allah. Allah instructed that all Muslims must worship fifty times a day in the future. When Muhammad returned to the sixth floor and met Musa again, Musa reminded him that fifty prayers far exceeded the capacity of Muslims to bear. Muhammad then prayed to Allah nine times in a row to reduce the frequency of worship until it was reduced to five worship per day. At dawn, Muhammad returned to Mecca. According to this statement, Jerusalem became the third holy city of Islam after Mecca and Medina, and the Feast of Ascension became an important festival in Islam.

August 15th, Maria Diangkat ke Surga

August 17th Independence Day (Hari Kemerdekaan)