There is an option for foreign investors to do business in Indonesia without establishing a foreign direct investment company. It is by finding local supplier in Indonesia to import and distribute your goods to your country through direct exporting.
However, it is not always easy for foreigners to deal with Indonesian suppliers due to Indonesian archipelagic nature, red tapes and business culture. By engaging local suppliers in Indonesia, many foreigners have the goals to earn the maximum profit, cut down costs, and enhance the overall product flow and quality.
Read on to know more about common problems with finding suppliers in Indonesia and how you can begin solving them.
It is harder than you think to actually find an Indonesian supplier online, even though the Internet has advanced greatly in the country. This is because most of the companies in Indonesia are still relatively traditional and do not rely on the Internet very much.
Even when some companies do have websites, it is still difficult to find on the Internet due to the lack of optimization. Moreover, some of the information provided on the website may also be outdated.
Overcoming the language barrier when finding and dealing with Indonesian suppliers is one of the biggest challenges most foreigners are likely to encounter when starting a direct exporting business.
It can be overwhelming and extremely challenging because English is the main language used by many foreigners for all sorts of communications and paperwork.
However, most Indonesians do not speak much English, and the lack of English skills can be more obvious outside of major cities. Therefore, you will need an Indonesia consultant or someone who is fluent in both Indonesian and English to avoid any miscommunications, especially when it comes to signing agreements.
If you happen to be able to get the information and contact of a supplier in Indonesia that you would like to partner with, you will need to understand that a lack of supplier’s responsiveness is a common issue for most foreigners.
Partly due to their business culture, most Indonesian businesses take things slowly and will not reply to your enquiry right away. And if the enquiry is sent by email, the probability of getting a reply is much lower due to the lack of utilisation of the Internet.
Furthermore, Indonesian businesses do not bother to deal with someone whom they have never met before. If you need a response real quick, calling directly or meeting in person is the way to go.
Cekindo is able to call your suppliers or meet them in person on your behalf so you do not have to travel to Indonesia on your own.
Foreign investors may find the quality goods to be subpar or even bad when the shipment has arrived. These poor quality products are not what they expect and do not meet the requirements they have agreed with the local suppliers.
This issue is not uncommon in Indonesia but it can be avoided through adequate quality control and spotting potential quality gaps before it happens. It is a good idea to have a local representative to conduct scheduled quality check and report any discrepancies before the products are shipped.
It is always much easier to engage Cekindo than looking for a local supplier in Indonesia on your own.
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