Business people who are used to Western-style business transactions may be surprised when they enter Indonesian business circles. Doing business in Indonesia means developing contacts in Indonesia’s business first. You can only proceed to regular business deals after you’ve gained the trust of these power holders first. Some business newcomers may have to learn this before they think of setting up company. This may eventually influence how shareholders may nominate the right leader for the new business.
Having the Right Background
You need to consider the cultural background of the person your shareholder’s vote to lead the company. This becomes necessary when you are doing business in Indonesia because locals are very sensitive. Indonesians will confer among themselves if you are worth interacting with. This differs from some cultures where the main consideration is the academic background of the candidate.
This doesn’t automatically mean that you will need an Indonesian to lead the company, but it does help. The wider the social circles of the candidate, the more likely locals will trust your company leader.
It also doesn’t mean that your company leader has to be just average in academics. Your new leader will just need to balance technical skills with people skills when doing business.
Be Supportive of Your New Leader
When pursuing incorporation Indonesia, you will notice that you will be asked to name the Director of the company in the filing documents. This company leader should have the support of the rest of the shareholders to guarantee company success. If the official lacks support within the company, this will reflect on the company’s reputation.
If you intend to name someone as the new leader, be sure the rest of the company agrees. The roles of the other shareholders will also follow after. A good rule of thumb is to “let your leader shine”. You can expect your company to be respected if your new leader develops a good reputation among Indonesian social circles.
If you plan to create a new Indonesia company startup, you may want some advice regarding leadership in the company. If so, we at 3E Accounting Indonesia are willing to offer our Business Advisory services. This may help you to create the right corporate hierarchy so that your business venture succeeds.