Indonesia: Cultural Insights I
City of Contrasts
City of Contrasts
Introduction
I landed in the capital of the world’s fourth most populated country in the early morning. Approaching the city from above, the plane left behind the pristine clouds and descended into the hazel smog. Through the windows on my left, I could see the residential and commercial skyscrapers of SCBD reflecting the sun’s sweltering beams. On my right, the sea split into squares. Shrimpers and fisherman had netted off the territory into uniform plots. They floated on small motorboats nearby. Slums, industrial zones, and agricultural lands stretched into the distance. This was my first taste of the contrasts apparent throughout Jakarta’s urban landscape.
Riding in the back of my Grab car, we painstakingly lumbered forward as motorbikes and trucks whizzed by (I would later find out the car had mechanical issues — more on that later). Beyond the magnificent highway, to my right and left, densely packed two-to-three story buildings populated neighborhoods as far as the eye could see. Colorful orb-tops of mosques rose above the shanties and crude concrete.
In the back of another Grab car, we made our way to Central Jakarta. Off the highway, we entered manicured city streets wherein sparsely populated government buildings and wealthy homes were set back by large gates. Tucked away in corners and side streets, micro-business owners in small vehicles and stalls operated a thriving cash economy.
Pulling up to the hotel, the car stopped for the security check. The guards opened the trunk scrutinizing its contents and ran bomb detectors under the vehicle around the car before waiving us through. I was in a very different world.
Foreign & Local
One of the first things I noticed was how empty the airport was. Terminal 3, the newest and most expensive terminal to date at ~US$588m, seemed incredibly underutilized. Statistics from last year tell a story of low travel volumes. Despite large government spending on infrastructure projects, demand post-COVID at CGK has yet to catch up to supply.
Another observation was the skepticism I encountered at immigration. Traveling shortly after Hari Raya, I was arriving at a unique time. Nonetheless, I noted the suspicion from immigration officers when I said I was coming for tourism/sightseeing. After saying I had friends in Jakarta, immigration relaxed. International tourists, it seemed, don’t venture into Jakarta.
Past & Present
Despite an intimidating front, I found that Jakarta was very welcoming. This was a pleasant surprise to me. I was expecting the opposite based on feedback from folks that had transacted in Indonesia. They had described Indonesia more broadly as a generally “socialist & nationalistic” environment.
While I definitely encountered nationalistic undertones, I garnered there was more a culture of skepticism towards outsiders due to the nation’s storied history and contemporary business environment rather than an inability to be open. After 250 years of Dutch colonial rule/exploitation and a Japanese invasion during WWII, Indonesia has understandably developed a strong national identity. Today, international business in Indonesia revolves heavily around natural resource extraction at the lowest possible cost hence a widespread suspicion of foreign business (more on exports in the development economics series).
Politics & Business
Indonesia also has a unique business culture. Setting aside corruption (which is a feature of many developing nations), I found that deal discussions were zero-sum in nature. Rather than developing long-term commercial relationships, Indonesian businessmen appear to treat each opportunity on an independent basis. As a politics student, I suspect that this may be due to its political system.
Although elements of quid pro quo taint its image, I do think it’s important to call out how vibrant Indonesia’s democracy is. Despite a visual military presence throughout the city, civil life is highly engaged and outspoken. Take for example the last presidential election in 2019 where 80%+ of eligible voters — or ~160m people — cast their ballots for the President, Vice President, and MPR representatives on the same day!
As Indonesia approaches an election year in 2024, political transition was en vogue during my visit. Despite widespread popularity, President Joko Widodo (“Jokowi”) is set to step down due to constitutional limitations. Beyond being confident that he would actually do so, I gathered that the business elite had no idea who was going to win amongst the three most viable candidates. How many other developing nations (especially, in Asia) can say the same? While Indonesia’s political uncertainty may lead to short-term thinking, I was impressed with the direct ability for people to shape their economic future.
Closing Thoughts
While I entered with a negative bias, I was surprised to see that many of the perceived shortcomings were not present in day to day life. Beyond this, I was shocked that international businessmen overlooked many of Indonesia’s redeeming qualities.
While that is not to say that certain problems — such as wide-spread corruption, low labor productivity, low technical literacy, non-competitive exports, and mercurial economic policies — do not exist, there are silver-linings in both lived experience and data. Developing nations have very different challenges to the developed world. Viewing Indonesia through this perspective, I was inspired by the ways that its outlook in the next 5 to 10 years could turn exceptionally positive — conditional on the continuation and evolution of economic policies enacted over the last ten years.
In the next chapters in the culture series, I will explore the middle class, the dichotomy between small & large businesses, and spheres of influence extending from Jakarta to Java to Indonesia at large.