MOVING TO INDONESIA

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KEY FACTS

Official Name: Republic of Indonesia

Capital City: Jakarta

Type of Government: Republic

Official Languages: Bahasa Indonesia

Area: 1,826,440 sq. km/782,665 sq. mi

Population: 240.2 million

Religion: Muslim, 88%; Christian, 8%; Hindu, 2%; Buddhist, 1%; Other, 1 %

Currency: Rupiah (Rp)

Number of Time Zones: 1

Greenwich Mean Time (GMT ) plus 7 to 9 hrs; (EST) plus 12 to 14 hrs

Weights and Measures: Metric system

Country Domain: .id

Country Tel Code: 62

AT A GLANCE

Expatriates have been living in Indonesia for many years, beginning with Dutch colonists and continuing to the present day. It is a country with an extraordinary variety of peoples, geographical features, flora, and fauna.

Despite periods of political unrest Indonesia has also been a major tourist destination for many years. Visitors find the Indonesians in general to be quiet, polite, and friendly people who appreciate harmony, restraint, and modesty. Family and extended family are of primary importance and the elderly given particular consideration.

Indonesia’s more than 200 million people come from approximately 350 distinct ethnic groups, each with its own languages, customs, and heritage.

Religion is also diverse – the vast majority are Muslims, but there are also Buddhists, Hindus, and Christians. The influence of animism is also evident.

Language, while officially Bahasa Indonesia, is also varied. There are about 300 other languages spoken in the country, and 70 million people speak Javanese.

Government

Amendments to the 1945 Constitution passed between 1999 and 2002 have resulted in significant changes to the entire state structure. Democratic processes in Indonesia are now considered more fully democratic. The reforms included direct elections of the president and vice-president, and a more representational electoral process for members of the Peoples Consultative Assembly (MPR), comprised of the House of Peoples Representatives (DPR) and the Regional Representatives Council (DPD), under a legislative system of indirect proportional representation.

The tenure of the presidency is now limited to two five-year terms, and the president’s legislative powers have been reduced. All new laws must now be approved by the DPR, which has gained in strength and influence, although the president retains the right to select the cabinet in consultation with the DPR.

The DPR, which has 550 seats, has always had the right to initiate legislation. The DPR is now fully elected with appointment seats for the military eliminated. Seats are delegated to political parties by direct elections using a proportional representation basis. The DPD, which consists of 128 directly elected representatives from Indonesias 33 provinces, is limited in its formal powers. Elections for members of the DPR and DPD are held every five years.

Several political parties hold significant power. The Democratic Party, while holding just 57 DPR seats, is also the party of President Susilo Bambang Yudhoyono. Golkar, billed as a non-ideological party, is the largest party in the DPR, with 128 seats. The Indonesian Democratic Party-Struggle (PDI-P) is the next largest party, holding 109 seats. PDI-P supports an ideology based around Pancasila – a philosophy based in Buddhism. Because there are many parties with some support, but none approaching majority support, coalitions within the government are common and necessary.

The president and vice president, who are no longer elected by the MPR, are directly elected through a two-round majority system process.

The Supreme Court judges are appointed by the president.

Political and economic overview

The 1950s were years of political difficulty, and when the first general election in 1955 failed to produce stability, President Sukarno established himself as dictator. Sukarno became increasingly nationalistic, withdrawing Indonesia from the United Nations and developing close ties with communist China, Cambodia and North Korea. In 1966 President Sukarno transferred much of his power to General Suharto, who became Indonesia’s second president. As president, Suharto returned Indonesia to the United Nations and broke relations with China, Indonesia began to enjoy political stability and steady economic growth.

Indonesia had a dynamic, yet stable, economy prior to the Asian economic downturn in the summer of 1997. However, in spite of the increase in the well-being of much of the population, resentment grew over the widening income disparity and the massive wealth accumulated by Suharto’s family and friends.

Frustration with the restricted political process, coupled with growing economic problems, fueled riots. The presidential election in March 1998 saw several disturbances. Following Suharto’s reelection, violent protests occurred, with over 500 people killed. Ultimately, Suharto was forced to resign and face corruption charges after 32 years in office.

Modifications in the electoral process prior to the parliamentary elections of June 1999 resulted in a more open election and Abdurrahman Wahid became president. In 2001, the MPR voted to remove Wahid from office on the grounds of incompetence and corruption. Vice-president Megawati Sukarnoputri, the daughter of former president Sukarno, was sworn in as president.

Subsequently, in 2004, former army general Susilo Bambang Yudhoyono unseated Sukarnoputri in Indonesia’s first-ever direct presidential elections. Observers described the election as a peaceful transition, although political turmoil in the provinces and economic pressures continue unabated.

Tensions and terrorism

Historically, the tensions in the region have been caused by independence movements that continue to present a challenge. One such example is East Timor, a former Portuguese colony, which was invaded and annexed by Indonesia in 1976. This former Indonesian province had been a source of controversy and violence.

Pursuant to an international agreement, the East Timorese voted overwhelmingly on August 30, 1999 for independence from Indonesia. In May, 2002, the former Indonesian territory, which had been under United Nations administration, was officially declared independent and the newly-elected East Timor President inaugurated.

Recently, concern has focused on Indonesia’s militant Islamic political movement which has increased terrorist activity, targeting foreign nationals in violent attacks and kidnappings. Fears of increased terrorist activity were realized in the attack at a Bali nightclub in October of 2002 and the 2003 car bomb explosion at a luxury hotel in the commercial district of Megan Kuningan.

The possibility for violence has increased with escalating political tensions; the Indonesian government declared martial law in the Aceh province and issued a travel warning to foreign tourists traveling to Papua province. While most Indonesians follow a moderate form of Islam, the Indonesian authorities have pursued radical Islamic militants responsible for the attacks on Westerners and prosecuted the militant leaders in the courts.

2004 Tsunami

The catastrophic devastation of the 2004 tsunami disaster in the province of Aceh and surrounding areas left more than 220,000 Indonesians dead or missing – and brought international attention and economic aid to the region. While this aid has helped to speed recovery from the tsunami, Indonesia is still recovering from both the economic and environmental effects of the disaster.

UNDERSTANDING THE PEOPLE

Ethnic makeup

Indonesia has a diverse ethnic makeup. The people are predominantly of Malay and Polynesian ancestry; the inhabitants of Irian Jaya are Papuan and are related in appearance to the Australian Aborigines; in eastern Indonesia, the people are a blend of both.

Of the major groups, nearly half are Javanese, about 15 percent Sundanese, and a small percentage are Madurese and Coastal Malays. About a quarter of the population is made up of various smaller ethnic groups.

Cultural traditions

The culture of Indonesia is fragmented into as many pieces as there are ethnic groups. The characteristics of a number of the major ethnic groups can give some taste of the culture of the country as a whole.

The Achenese of northernmost Sumatra have been traders for more than a thousand years and were one of the first to experience Islam in Indonesia. They are predominantly agriculturists, fine metal workers, weavers, potters, and boat builders. They combine their belief in Islam with a belief in mysticism.

The Badui who live in 35 small villages in West Java, believe that they are descendants of gods and remain isolated from the outside world. They adhere to a complex mythology with spirits and deities, most of which are associated with the harvest. They remain hunters and farmers.

The Balinese are a Hindu people who live in communal villages that cooperate regarding the use of land. Families live in compounds that contain the home, several courtyards, and small family shrines.

The Bataks, from the interior of north-central Sumatra, are believed to be a model of all ancient proto-Malay cultures of the Indonesian archipelago. Unlike most Indonesians, they are known for their outgoing, gregarious, and aggressive personalities and their volatile tempers, and for their wood carving and weaving.

Dayaks are non-Muslim groups who live along the rivers of inland Kalimantan and practice a system of shifting cultivation. They also still hunt and fish with spears and blowpipes. Shamans are responsible for the community’s welfare. Dayaks have a long tradition of art, featuring wood and bamboo carving, tatooing, weaving, beadwork, basketry, and mat-plaiting.

The Javanese live in villages that contain between 300 and 3,000 people and practice wet rice farming. There is a great emphasis on rank, status, age, and degree of familiarity that is reflected in nine levels or distinctions in spoken Javanese. The people are gentle and reticent, noted for their indirect style and their desire to avoid confrontation. This ethnic group has developed batik into an art form, which is well known throughout the world, and performances of the gamelan and the shadow play.

The Minangkabau are Muslims from the highlands of west-central Sumatra who believe in spirits and supernatural beings and in the importance of motherhood. In this area there are archaeological links with the great Hindu kingdom of Majapahit as well as signs of Dutch influence in the 19th century.

The overseas Chinese are found mainly in the port cities of Indonesia, primarily in Java, eastern Sumatra, and western Kalimantan. The Chinese have been successfully running businesses in Indonesia for over two centuries. Chinese make up less than 3 percent of the population, but have some part in roughly 70-80 percent of all economic enterprise-everything from small shops to major banks and businesses.

Indonesian attitudes

Toward hierarchy

Indonesian society and business are hierarchical rather than democratic. Thus, there is a father-son, superior-subservient relationship going on between people in a corporation. The hierarchical social structure in Indonesia, as elsewhere in Southeast Asia, encourages an authoritarian style as a protective measure. Asian patriarchs look after their own employees in return for unquestioning loyalty. This ethos makes Indonesians reluctant to argue with anyone in authority and willing to leave decision-making to committees. It also promotes patronage and nepotism.

Toward work

Most Indonesians work a 6-day, 40-hour week, although many foreign companies prefer a 5-day, 40-hour week, and local industries and government departments are moving to a 5-day week.

On the whole, Indonesians see work as a job rather than a career and do not feel the commitment to work found in Japan, Hong Kong, or other Southeast Asian countries. Although there is a very large labor pool, it is mostly an unskilled one.

At worst, Indonesians tend to ignore work quality, are not punctual in their arrival but are in their departure, and are not concerned with meeting deadlines.

Large numbers of mainly underskilled and undertrained workers enter the work force annually. There is a shortage of managerial and technical staff, and wages are generally low. Competent middle-level Indonesian managers, of which there are few, are often well paid.

Industrial disputes and strikes are uncommon, as protests of any kind are rigorously discouraged in Indonesia. Union membership is voluntary. Collective agreements for any changes must be approved by the government.

Toward foreigners

North Americans and most Westerners are generally well-received and well-treated. Among some sectors of the Indonesian population you may encounter strong nationalistic sentiments that can interfere with establishing relationships between local people and foreigners.

Expatraiates are objects of curiosity because of differences in physical appearance, lifestyle, and personal belongings. Expect to be stared at and scrutinized. Caucasians may encounter the term bule in Jakarta, a term that can have negative and offensive connotations.

Toward women

Western women should expect some difficulties both in doing business and in everyday life, especially outside Jakarta.

Women should be prepared for at least some sexual harassment and rude remarks, particularly if unescorted on the crowded streets in out-of-the-way parts of Jakarta.

Foreign businesswomen are generally accepted and respected in business, but it is essential that they keep a low-key approach. It is even more important for businesswomen than businessmen to gain the respect of Indonesian counterparts by showing that they are competent and sensitive to Indonesia’s concerns.

It is difficult for businesswomen to host a meal for Indonesian male clients. To show hospitality, try to arrange a banquet paid in advance so that no cash changes hands. If you are working through a local intermediary or branch office person, then “who pays” can be easily masked.

It is critical that all women, but especially businesswomen, respect Muslim and Hindu customs and dress conservatively with, at the very least, upper arms and knees covered. This is often trying because of Indonesia’s hot climate, but baring arms or wearing shorts in public is unacceptable, and wearing any revealing fabric or style is completely inappropriate. A long-sleeved dress or blouse or jacket and skirt in dark and muted colors is most appropriate for business. Bright colors should not be worn by businesswomen. Slacks should be reserved for casual wear. Makeup and perfume should be kept at a minimum.

CITIES

Bandung

With a population of over two million people, Bandung is Indonesia’s third largest city and the capital of West Java. Located 200 km/120 miles east of Jakarta, Bandung is the site of 50 universities and colleges and is a major intellectual center. In the past, it was called the “Paris of Java” because of its many parks and gardens. The city is also characterized by an abundance of Art Deco architecture.

The majority of the residents are native Sundanese of West Java, and the city is recognized as the cultural and artistic center for the Sundanese.

The city is becoming increasingly industrialized, with an emphasis on textiles, food processing, and aircraft manufacturing, but the pace is still significantly slower than in Jakarta. The soil is fertile, and produces a variety of crops such as rice, coffee and various fruits. The city is also cleaner and less congested than Jakarta.

Because of its location in the highlands, Bandung’s climate is pleasantly cool, much cooler than most of Indonesia’s cities. The northern part of the city is particularly mountainous.

Jakarta

At the western end of Java, overlooking the Java Sea, Jakarta has survived the conquests of various countries and groups, including Hindu princes, Islamic sultanates, Portuguese traders, the Dutch, and the colonizing British.

In 1945, Jakarta was known as Batavia and had a population of 900,000. Today it is a modern, busy city, stretching over 360 square miles, and is now one of the world’s most densely populated areas. As with many quickly growing cities, congestion and pollution are significant issues. It is a flat city characterized by a maze of straight canals, wide boulevards, and narrow side streets. The streets are always crowded with cars, trucks, motorbikes, and pedestrians.

Jakarta is the chief port, the commercial center, the capital, and the economic center of the country. With a population of nearly nine million, it is home to a wide range of ethnic groups as well as a very large expatriate community. The city has a cosmopolitan feel, and serves as a cultural center for Indonesia.

There is a modern central business district, known as the “Golden Triangle” with new hotels, restaurants, and office buildings. Outside of this prosperous area is a largely undeveloped world where many still do not have sewerage or a clean water supply.

Jakarta is divided into five wilayah/mayoralties: North, South, East, West, and Central. Most expatriates live in newer suburbs in South Jakarta.

Medan

The provincial capital of Northern Sumatra with a population of over two million, Medan serves the surrounding tea, rubber, tobacco, palm oil, and coffee plantations and is a major air and sea link to Singapore and Penang across the Straits of Malacca. Popular mountain resorts are nearby.

Medan means “field,” “battlefield,” or “arena” in Bahasa Indonesia. During the 16th and 17th centuries, it was indeed a battlefield in the power struggle between the Aceh and Deli kingdoms. The town grew and prospered after the arrival of the Dutch in the 19th century. There are still a number of Dutch buildings that evoke Medan’s colonial past, as well as traditional and Islamic structures.

The city contains a variety of cultures-Indonesian, Arab, Javanese, Batak-and has a sizable Chinese population who dominate the local business community.

The Medan cultural and industrial fair is held in early May and attracts visitors from all over Southeast Asia.

Surabaya

With a population of 2.5 million, this industrial center is Indonesia’s second largest city, and the provincial capital of East Java. It is one of Java’s most important trading ports and has been for centuries. The city is the main base for the Indonesian navy, featuring shipyards and several naval schools.

The central part of the city is modern, with new office buildings and shopping centers, but poverty marks the rest of the city where people live on narrow streets that are crowded with warehouses. Flooding is common during the rainy season, due to clogged sewers and Surabaya’s location – a low, flat, river delta.

The city is a center for manufacturing, agriculture, and trade; on the outskirts are large steel refineries and sugar and plywood processing plants.

CLIMATE

Indonesia has a tropical climate, uniformly hot and humid, with monsoon rains from October through April and a dry season from May through September. The monsoon season is accompanied by low winds, temperatures of 29°-35° C/85°-95° F, and humidity averaging 83 percent.

Temperatures and humidity levels in the higher hill country tend to be much more comfortable. The days and nights are of almost equal length year-round.

The tropical climate can be debilitating for some. Due to the heat and humidity, it is important to drink as much fluid as possible to prevent dehydration. It is also advisable to use sun-block, wear a hat, and stay out of the sun as much as possible.

Tsunami – a destructive natural force

On December 26, 2004, a series of tsunami (tidal) waves generated by an undersea earthquake caused massive loss of life and destruction in Indonesia and the region. The most powerful earthquake recorded in 40 years, the massive sea surge was among the world’s worst natural disasters, with the death toll on the island of Sumatra near the epicenter of the earthquake approaching one hundred thousand.

Governmental and international aid agencies assisted in local relief efforts. The scope of this natural disaster triggered calls for an early warning tsunami system in the Indian Ocean.

Indonesia was further devastated by a 6.3 magnitude earthquake in May of 2006. The quake left 200,000 homeless and more than 5,800 dead in and around the city of Yogyakarta, east-southeast of Jakarta.

Information provided in association with Living Abroad