Due to its proximity and large population, Indonesia has always been considered by Chinese companies as the top choice for expanding into Southeast Asia. As the largest economy in ASEAN, Indonesia’s economy has long maintained a growth rate of 5%, and in 2022 it achieved the largest trade surplus in its history, making it one of the most important and dynamic markets in Southeast Asia. Google, Temasek, and Bain & Company once jointly released a report predicting that by 2025, the digital economy market size in the Southeast Asian region is expected to exceed 360 billion US dollars, making Indonesia another blue ocean for Chinese companies going global.
As the saying goes, “When in Rome, do as the Romans do.” When venturing into Indonesia, understanding the local culture and customs is very important. What are the cultural customs in Indonesia? Let’s take a look together!
1. Introduction to Indonesia
Official Name: Republic of Indonesia
Capital: The new capital of Indonesia is Nusantara, which means archipelago in Indonesian and reflects Indonesia’s geographical environment and has a symbolic significance internationally. Although Nusantara has been designated as the new capital, the process of relocating the capital is expected to be gradually completed over the next few years.
Area: With a total area of approximately 1,904,569 square kilometers, Indonesia is the 14th largest country in the world, comprising numerous islands, including Java, Sumatra, Kalimantan, Sulawesi, and others.
Geographical Location: Indonesia is situated at the crossroads of Southeast Asia, bordered by the Pacific Ocean to the east and the Indian Ocean to the west. It lies to the south of China, sharing significant geographical touchpoints, especially regarding maritime routes. This geographical relationship creates interdependence and potential for cooperation between the two nations on political, economic, and geopolitical levels.
Population and Ethnicity: Indonesia is a multi-ethnic country with the Indonesian people being the majority ethnic group. There are also various ethnic groups such as the Javanese, Sumatrans, Balinese, Papuans, and more.
Language:The official language of Indonesia is Indonesian, which is the common language used throughout the country. In addition, different regional languages and dialects are spoken, such as Javanese, Balinese, Sumatran, and others.
2.Cultural Analysis
Indonesia is a country rich in cultural diversity, which is evident throughout its territory. This diversity corresponds to the national motto “Bhineka Tunggal Ika,” meaning “Unity in Diversity.” This motto, derived from Old Javanese, confirms that Indonesia’s existence as a diverse nation is unique and constitutes a national treasure and resource.
(1) Working Hours and Holiday Arrangement
The Indonesian Labor Law (13/2003) stipulates “normal working hours” as not more than 7 hours per day and not exceeding 40 hours per week, with no more than 6 days of work per week. Arrangements for overtime must be agreed upon with the employee and paid at the specified overtime rate, with a maximum of 3 hours of overtime per day and no more than 14 hours of overtime per week. However, managers, planners, controllers, executives, and similar positions with higher salaries who are responsible for the company’s operations cannot receive overtime pay, and their working hours are unrestricted. Each employee is entitled to one day of paid leave for every 23 working days, up to a maximum of 12 days per year. Leave can be taken in parts or as a whole but must be a continuous period of at least six working days. These provisions also apply to independent contractors.
(2) Religion and Belief
Indonesia officially recognizes five major religions: Islam, Protestantism, Catholicism, Hinduism (referred to as Induism locally), and Buddhism. Among the country’s population of 281 million, Muslims make up 88%, Protestants 5.3%, Catholics 2.5%, Hindus 2.5%, and Buddhists along with other religions account for 1.7%. Indonesia is founded on the principle of “Pancasila,” follows the “1945 Constitution,” and practices the separation of religion and state. Therefore, Islam is not the state religion, and Indonesia is not an Islamic state, as exemplified by the implementation of Sharia law in parts of Aceh province.
(3) Food Culture
Indonesians often prefer to eat with their hands at home or during casual gatherings. However, in more formal settings, they typically use knives and forks. Rice is the staple food for Indonesians, and their taste tends to be sweet, spicy, and fond of fried foods. Classic Indonesian dishes include Nasi Kuning (turmeric rice), Beef Rendang, Satay, Indonesian curry sauce, Dirty Duck, and Pepper Crab.
When hosting Indonesian guests, consider the following points:
1. If the guests are Muslims, avoid serving pork, dog, snake, and other foods forbidden by Islam.
2. Muslim guests abstain from alcohol, so do not offer or encourage them to drink alcohol unless you are certain of their preferences.
3. It is best to provide a clean plate for serving rice and a set of spoons and forks for them to eat.
4. If possible, offer chili sauce and cold beverages.
(4) Living Customs and Traditions
The local Muslim population accounts for about 90%, and there are certain customs and taboos to be aware of. They do not drink alcohol, which is not served at banquets; the left hand is considered unclean, and it should not be used to greet, receive gifts, or hand over items; every Friday afternoon, Indonesian Muslims will go to the local mosque to pray.
The tradition of respecting women in Indonesia is widespread; men allow women to go first, including in public places where men let women eat or board vehicles before them. When women pass men, they bow slightly to show respect. In social situations, men do not take the initiative to shake hands with women; if a woman extends her hand first, a light handshake is appropriate. Also, touching another person’s head is considered rude in Indonesia.
Indonesians generally value politeness, using phrases like “thank you, I’m sorry, please forgive me,” and other respectful language. When meeting strangers, they generally do not initiate handshakes. Additionally, there are local customs and taboos to be aware of: avoid hugging and kissing in public; do not inquire excessively into personal privacy as it may cause resentment; do not point at others as it is interpreted as impolite; in social situations, use traditional greetings by pressing your hands together, smiling, and nodding.
Javanese and Balinese Indonesian women typically wear simple tops and beautiful long skirts called “sarongs,” which can be made of cotton or synthetic fibers. Men usually wear light shirts and long sarong-style pants. Indonesian women often wear wooden clogs and change into embroidered slippers or high heels when going out. Moreover, Indonesians enjoy wearing unique, imaginative, and interesting accessories such as necklaces, earrings, bracelets, and brooches.
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