Foreign Companies in Indonesia: Here for a Good Time, Not a Long Time
Indonesia is a place so vast and vibrant, it practically begs foreign companies to dive in headfirst. With over 17,000 islands, delicious cuisine, and a workforce that has seen it all, it’s no wonder every multinational is eager to plant their flag. But here’s the thing: Indonesians aren’t here for your “we’ve arrived to save you” narrative. They never asked for it.
For decades, foreign companies have been drawn to the mirage of “potential.” And who could blame them? A market of 270 million people with rising disposable incomes sounds like the jackpot. But once reality sets in many of these corporate adventurers suddenly discover they “need to refocus on core markets.” Translation? They grab their toys and leave.
Now, Indonesia isn’t some helpless damsel waiting for the next savior to show up. If anything, the country’s workforce has grown skeptical, rolling their eyes at every newcomer’s promises of being “different this time.” So, foreign companies, listen up. This history lesson is just getting started.
“Potential”: The Magic Word for Doing the Absolute Minimum
Foreign companies entering Indonesia love the word potential. It’s their all-access pass to unrealistic expectations and bare-minimum effort. They come in talking a big game, like that friend who insists their new business idea will be the next big thing, but never actually builds a website. Indonesia, with its “perfect demographics” and “booming market,” gets these types all the time. And sure, they make a grand entrance, but sticking around? That’s where things fall apart.
Take Uber, for example. The ride-hailing giant entered with big ambitions and slick marketing but failed to account for Indonesia’s unique market dynamics. They eventually packed up and sold their operations to Grab, leaving drivers and employees in limbo.
Or consider Japanese retailer Isetan, which shuttered its Jakarta store in 2016. Despite the initial fanfare, they failed to adapt to the competitive and price-sensitive retail environment dominated by local heavyweights like Matahari and Ramayana. Instead of recalibrating their strategy, they simply packed up and left, leaving employees and loyal customers wondering if they were just another footnote in Indonesia’s retail history.
And let’s not forget the companies that treat Singapore as their real HQ, with Indonesia serving as the experimental sandbox. It’s like saying, “We love you, but not enough to actually commit.” These firms dip their toes in the market, hire a few locals (preferably on someone else’s payroll), and then complain when the money fountain doesn’t gush immediately.
Indonesians aren’t fooled. If your business plan is basically “wait and see,” don’t be shocked when the workforce doesn’t roll out the red carpet. Commitment isn’t just a buzzword. It’s the difference between becoming a trusted brand and a cautionary tale in an MBA case study.
“We’re Doing You a Favor”: The Savior Complex Nobody Asked For
Nothing quite captures the art of missing the point like foreign companies arriving in Indonesia with a savior complex. “Behold!” they declare, as if unveiling the answer to a question no one asked. “Aren’t you lucky we’ve come to teach you about real business practices and global standards?” The subtext is clear: “Without us, how would you ever manage?”
Indonesians have been managing just fine, thanks. Local conglomerates like Astra and Lippo are titans of industry that could buy and sell some of these foreign newcomers before their morning kopi. The workforce doesn’t need anyone to swoop in with their “Western wisdom” and condescension thinly disguised as mentorship.
But foreign companies don’t stop there. They roll out job ads promising “global exposure” while quietly offering salaries that wouldn’t buy you a week’s worth of parking in Jakarta’s CBD. Meanwhile, the expat CEO is living the high life, complete with five-star housing allowances and a salary that screams, “What budget constraints?” Local talent notices this, by the way.
And the pitch? It’s always the same: “We’re bringing you to the big leagues.” But when the big leagues come with zero stability, dubious development opportunities, and a track record that’s more one-hit wonder than chart-topper, Indonesians aren’t impressed. They don’t want to play on your team if the game plan involves ignoring their contributions while treating them as a budget-friendly labor pool.
The workforce wants more than a paycheck. They want respect, growth, and a company that doesn’t talk down to them. Because the truth is, they’re not lucky to have you; you’re lucky to have them.
Tough Times? Sorry, We’re Busy… Leaving
If Indonesia were a person, they’d have a standing appointment with their therapist to work through abandonment issues. Foreign companies love to make brazen entrances, showering the country with promises of investment and growth like confetti at a wedding. But the moment things get even a little complicated (read: currency fluctuations, new regulations) they’re out the door.
Take Uber, again. They entered Indonesia with all the swagger of a tech giant convinced it could disrupt the market. But it didn’t take long for them to realize they were up against Gojek and Grab, who had already set the gold standard for ride-hailing in the region. Instead of staying to adapt and compete, Uber sold its Southeast Asian operations and quietly exited, leaving a cloud of exhaust and unanswered questions.
Then there’s the case of Ford, which left Indonesia entirely in 2016, citing an inability to maintain profitability in the market. The move blindsided employees, dealerships, and customers, many of whom were left scrambling for alternatives and support. For a global brand, walking away like that didn’t exactly scream “reliable partner.”
The pattern is clear: foreign companies bolt at the first sign of turbulence, leaving their employees, customers, and local stakeholders holding the bag. Trust is earned through resilience, especially in tough times.
So, if your plan for Indonesia is to revel in the good times and ghost when things get tough, maybe stick to markets where the biggest obstacle is a late shipment. Indonesia deserves partners, not fair-weather friends.
The Workforce Knows Better Now, and It’s Glorious
Indonesia’s workforce has upgraded, and they’re not here to play along with outdated narratives. The days when a foreign brand name alone could dazzle and command respect? Ancient history. Today’s top-tier talent knows their worth, and they’re not buying into promises that sound more like vaporware than an actual career path.
These professionals aren’t waiting for a corporate knight in shining armor to “rescue” them. They’re thriving at homegrown businesses like Gojek, Tokopedia, and Bank Mandiri. Why settle for a nebulous “global exposure” pitch when local companies offer competitive pay, real growth opportunities, and leadership roles that don’t involve playing second fiddle to expats? The crème de la crème of Indonesia’s talent pool has plenty of options.
So, what’s left for the foreign companies? Well, they could start by doing the one thing they’ve been avoiding: the actual work. No, not just the work of opening flashy offices in Jakarta’s Golden Triangle or plastering job portals with buzzword-filled postings. We’re talking about building trust, localizing leadership, and showing through actions, that they’re in Indonesia for the long haul.
The workforce isn’t falling for “quick wins” or “agile strategies” that collapse at the first sign of trouble. If foreign companies want to woo the best and brightest, they need to respect cultural nuances, invest in development, and actually stay through the tough times.
It’s not going to be easy. It’s not supposed to be. But the workforce knows better now, and they’ve set the bar higher. If you’re not willing to meet it, well, don’t be surprised when your job ads get ghosted.
Indonesia hasn’t locked its doors or thrown up a “No Foreign Companies Allowed” sign. It’s still open for business. But the days of rolling out the red carpet for anyone with a suitcase full of lofty promises? Those are over. If you’re coming to Indonesia, you’d better pack more than buzzwords and big ideas. You’ll need commitment, humility, and actual investment in people, not just profits.
Yes, it’s unfair to inherit the baggage of past failures. But guess what? That’s life. Indonesia’s workforce isn’t naïve, and they’re done handing out trust like free samples at a supermarket. If you’re serious about succeeding here, be ready to build that trust brick by painstaking brick.
But if you’re only here for the quick wins or to dip a toe in the market before bailing at the first sign of turbulence, don’t act surprised when the workforce gives you the cold shoulder. Indonesians have leveled up, and their patience for half-hearted efforts has run out.
So, foreign companies, the ball’s in your court. Indonesians are watching. And unlike before, they’re not afraid to call out the next dropout. No pressure.