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2024/05/14

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How do foreign traders develop the Indonesian market? Please keep this guide!

Indonesia is the largest archipelago country in the world, so it is also known as the "Country of Ten Thousand Islands". At the same time, Indonesia is also the fourth most populous country in the world, with a population of more than 276 million. A large population base and a special geographical environment make Indonesia relatively dependent on imports. Therefore, Indonesia has also become one of the markets that foreign traders can choose. So how should foreign traders develop the Indonesian market? Is there anything that needs special attention?

Multicultural and Religious Diversity

Indonesia is a multi-ethnic country consisting of thousands of islands, with more than 300 different languages and dialects. In terms of religion, Islam is the main religion, but there are also Christianity, Buddhism, Hinduism and other beliefs. Therefore, when foreign traders conduct foreign trade business, the first thing they must pay attention to is respecting local culture and religion and avoiding involving sensitive issues.

Tips for finding traces: The official language of Indonesia is Bahasa Bahasa Indonesia, but English is also relatively common in the local area. Using the language that the locals are familiar with and communicating with them will be more conducive to the conclusion of the transaction.

negotiation style

Indonesian business culture focuses on interpersonal relationships and trust, so establishing good interpersonal relationships will be more conducive to closing deals. It is worth noting that Indonesians usually do not reject people in person, so when they have offline face-to-face conversations with them, the other party's attitude is often friendly.

Therefore, in order to confirm the other party's true attitude, after the offline communication is over, it is best for foreign traders to conduct online inquiries to ensure that the other party did not choose to refuse in person out of habit.

Character traits

Indonesians do not have a strong sense of time. Their time is often jokingly called rubber band time, which means it is extremely elastic. Therefore, many times, when foreign traders agree to meet offline, the other party will even be half an hour to an hour late. Therefore, foreign traders should be more patient when dealing with Indonesian customers, rather than giving up because the other party is late or breaks an appointment.

Credit status

The credit status of Indonesian customers is medium, so foreign traders must conduct background checks to avoid payment arrears if they want to conclude a transaction with Indonesian customers.

You can directly search for customers through tracking data to obtain detailed customer information, including purchase volume, purchase amount, partners, etc.

（Source：ueedata）

For example, if we search for this product called "PT MAKMUR META GRAHA DINAMIKA", we will find that it only had two transactions in February, and the overall number of transactions is small, so foreign traders should be more cautious.

Focus on after-sales service and customer relations

Indonesian customers attach great importance to after-sales service. Therefore, if you want to establish a good and lasting relationship with Indonesian customers, you need to pay full attention to after-sales service. You need to respond to customer needs and feedback in a timely manner and actively help customers solve problems to enhance customer trust.

If you want to know more about the characteristics of Indonesian customers, you can send us a private message~

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