Indonesian consumers, particularly from middle and lower-income groups, are sensitive both to price and to general economic trends (for example, interest rates). Thus, importers of U.S. goods and services here pay closer attention to pricing than to product quality and promptness in delivery, when making purchasing decisions. They will seek low-interest financing, particularly in the coming year.
Other key success factors for doing business in Indonesia are patience and presence. Companies that have made a commitment to the country by establishing an office, or some other significant presence, will be more successful in marketing their products than those that attempt to sell their product on annual whirlwind trips. Brand loyalty and name recognition are highly valued by the Indonesian consumer.
To summarize, foreign interests can engage in business in Indonesia in the following ways by:
- appointing agents and/or distributors,
- setting up a representative office,
- entering into technical assistance or licensing agreements,
- forming joint venture operations, and,
- establishing a 100 percent foreign-owned subsidiary.