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What should an Indonesian business owner do when expanding business operations to other countries? Many business owners in Indonesia have the intention of expanding business operations to other countries, whether they be other countries in the Asia-Pacific region or countries in other parts of the world. Expansion abroad allows a company to gain access to many more markets around the world, allowing it to benefit and gain much revenue from the increased number of customers which would patronize the business. However, business owners who are not fully aware of all the challenges related to expansion of business operations to other countries might find success in the new country difficult to come by. For this reason, business owners of Indonesia who plan to expand their business operations abroad should ensure that they do certain things in order to guarantee the continued success of their business abroad.

Develop Relationships with Foreign Contacts

When a business owner expands the business to another country, the owner will need the assistance of various foreign contacts who will be of much assistance during the earliest phases of the business’s operations in the new country. For this reason, it is important for the business owner to foster positive relationships with these contacts because of the important assistance which they can provide. It is crucial for business owners to have complete trust in the foreign contacts who have proven themselves to be reliable. Similarly, these same foreign contacts must be able and willing to cooperate with the business owner. Foreign contacts can also help the Indonesian business owner become more familiar with the new country and thus adapt the business’s products and marketing strategies to suit customers in that country. By working with these foreign contacts, much good will come to the Indonesian business which has expanded abroad.


Choose an Appropriate Business Location

In most countries, business owners from Indonesia who expand to another country choose to set up the business in the other country in an area which is one of the country’s leading business and economic hubs. This fact should not come as a surprise because in general, such areas are the most conducive to business activity and therefore profits. Furthermore, these areas are usually large cities which are also population centers of the country in question. Therefore, they are usually home to a large customer base, allowing business owners to access a large number of customers which would not be in other parts of the country.

However, one drawback of establishing an Indonesian company’s foreign business operations in such an area lies in the area of rental costs. Major business centers around the world tend to impose higher rental costs related to the use of buildings in such areas as compared to those of other areas in the same country. Therefore, depending on the current financial situation of the company in question, it might not always be the wisest move to establish business operations in a major corporate hub.

One way by which problems related to rental costs can be overcome is by having and instituting an appropriate financial plan for the business in question. It might be the case that your business may be facing financial struggles due to a lack of a proper financial plan. If such is the case, we at Paul Hype Page & Co can come in to help you with one. We will work with you in such a way that an appropriate financial plan which will guarantee the financial success of your Indonesia-based business will be created and used.


Consider Logistics Issues

Depending on the location and connectivity of the location of the business in the new country, logistics may sometimes pose a problem to the Indonesian business owner. Thus, Indonesian business owners who expand their business to other countries must carefully manage finances and distribution channels in order to ensure that problems related to logistics are not encountered.

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