Importance of Adapting Corporate Culture and Ethic in Indonesia for the Multinational Companies

Fade Achnaf (25364561)
Assignment 1 International marketing

Importance of Adapting Corporate Culture and Ethic in Indonesia for The Multinational Companies

Culture is a subjective matters because it is unique for every person, Fatehi (2008) state that culture are people’s system of knowledge and standard of perceive , behave and act. Culture keep evolving and getting bigger from time to time. Corporate culture impact behavior of employee in workplace and once a company define its   corporate culture, it does not change rapidly (Fatehi 2008). Nowadays many MNCs from developed country expand their wing span to developing country where they can get cheap labor cost and ravishing market as well. In order to be able to fit in the host country MNCs have to be able to analyze the culture and code of ethic exist in host country. A phrase said “When in Rome do as de Roman do”.

Many developing   country have become a ravishing market to the developed country. One of the most ravishing market in Asia is Indonesia. With population more than 200 million people spreading in more than 17 thousands island Indonesia have a massive labor potential. Not to mention the low cost of labor that Indonesia offer, regional minimum wages for employee in Jakarta the capital city of Indonesia was around 2.200.000,- Rupiah ($220 AUD) per month (. In 2011 Indonesia have the biggest number of foreign direct investment in the South East Asia region. Foreign direct investment in Indonesia increase 20% worth   $19.53 billion that year and still growing until present (Leinbach 2012).

Why should company adapt to Indonesian corporate culture? Culture have always been a big influence in any society. In Indonesia society the awareness of local culture are highly appreciated. Despite so many culture differences across the nation, it is important for foreign company to be able to adapt to local corporate culture. For instance, because of Indonesia have various cultural differences the country...