Shared ramblings/ findings

Monday, August 30, 2010

4 Things that you need to know to open a business in Indonesia

Although the punishment for possession of marijuana, or drugs is very severe, there are a lot of loop holes in Indonesian government’s regulations of labour market. It is sad because it is text book model of - corrupted country‘s situation. However, due to the cost of the labour, and these following things below, it might add more benefit to your company.

1. There’s no labour union

You don’t have to worry about maternity leave, paying overtime, etc… There’s no law in paying overtime, maternity leave, bonus, etc. .. if an employee is disappointed , or gruntled, they usually find another job or just live with it.

2. You could discriminate who you’re hiring

It is legal to hire a staff based on their religion, race and skin colour, or just because you want to hire them.

3. You could give more tasks to your employees apart from their job descriptions

As a superordinate, you could even ask your employee NICELY off course... to pick up your dry cleaning. It is INPOLITE in Indonesia to reject your boss’s request, no matter how ridiculous they are.

4. You MUST have good connection with your local police head officer, head of tax collectors, and head of local village council, and any high rank government officials.

Although it is illegal to bribe, but when these “important people” might “understand” your situation, might decide to bend the rules, or look the other way.

By Suti Karjaya

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