How companies in Singapore can tackle challenges from offshoring to Indonesia5 min read

offshoring to indonesia

Trend of offshoring to Indonesia

Indonesia is quite a hotbed for global offshoring businesses. The reason for its popularity? Proximity to Singapore, affordable hiring, and the presence of emerging high quality infrastructure. Indonesia also ranks fourth in the Global Service Location Index. That’s an index covering 55 offshoring destinations and ranks them based on financial appeal, people skills, availability, and environment.

There are several key considerations to take note of when you are in the process of offshoring to Indonesia. Before you dip your feet in the lake, let’s look at some common barriers you’ll encounter.

Common hoops of fire when offshoring to Indonesia
offshoring to indonesia

1. Lack of an Indonesian entity and understanding of laws

When you first begin offshoring to Indonesia, you will notice that the biggest barrier is not having an Indonesian entity. Without experience or any entity, you will have to learn about the nation’s business laws and regulations from scratch. That makes your process in offshoring your business even harder.

Rome wasn’t built in a day. Similarly, if you are planning to offshore your business to Indonesia, you will have to spend time reading up and learning. Maybe even weeks and months! This could take up a huge part of your time and the limited resources you may have.

Business restrictions and regulations are updated yearly, and you will need to keep track of this too. A lack of experience and understanding will be a major roadblock in addition to having little to no presence in Indonesia. This can also be difficult if you only have a basic grasp of Bahasa Indonesia.

2. Language and cultural barriers

We all know that communication is key to get your company’s engines well oiled and running. That includes giving instructions to your staff to talking to your staff about your company’s long-term goals and vision. Since English is not the primary language, it can create quite a bit of hassle when  communicating with your employees. No one said offshoring to Indonesia was easy!

There may be some cultural differences between Indonesia and Singapore as well. Indonesians tend to avoid giving negative responses that would upset the other party. They thus tend to communicate in an indirect manner. For example, if you ask an employee whether they can get a major project done by a certain deadline – and it turns out that they can’t – the answer you get may not be clear. These cultural differences may not seem like much. But they really affect your offshoring businesses to Indonesia in the long run.


3. Lack of resources in hiring talent and securing office space

Imagine migrating to the other side of the globe. It would take you some time to figure out where to get the best coffee in town, or where the best hang-out places are. Similarly,  offshoring to Indonesia will bring logistical issues to your company, like knowing where to find your talent and – most importantly – office space. Being a foreigner sets you at a disadvantage, because you can’t exactly do as the locals do. Just where do you start?

Now, it may seem like offshoring to Indonesia is a pretty tough nut to crack. But don’t give up just yet. We present you some tips on how you can work around these barriers so that you can survive the process of offshoring to Indonesia. (Psst… You can thank us later).

Survival tips on offshoring to Indonesia

1. Get a recruiter on board

Kind of like spies in a James Bond movie, a recruiter is really the secret weapon you need in offshoring your business to Indonesia. Why? The main reason is that local recruiters know the business landscape in Indonesia, even the ups and the downs. Even recruiters in Singapore who specialise in offshoring may be able to help you – better yet if they have an entity in Indonesia. Chances are, you’ll be able to knock down the language barrier fairly easily.

2. Check out Nongsa Digital Park

There’s an up-and-coming tech park right in the heart of Batam, just 45 minutes away from good old Singapore. If you’re not sure where to start looking for awesome tech talent, look to Nongsa Digital Park. Companies like FWD Insurance have already begun to wade in that pool and you can too. Whether you require social media management help or securing skilled full-stack developers, Nongsa Digital Park has something for everyone – including that sweet office space you lack!

3. Make plans to visit your team regularly –
or fly them in

When it comes to offshoring businesses. It is important to visit your teams regularly to make sure that everything is in order and in good hands! After all, managing a team abroad can be difficult if you do not get a lot of face time with your staff. Physical meet-ups go a long way, and many companies will tell you that. They are a platform for you to know your staff better, build rapport and bridge the communication gaps in the workplace so why not take advantage of the close distance between Singapore and Batam?

The best part about offshoring to Indonesia is definitely the proximity! Indonesia is not very far from Singapore, much less Batam which is just a short 50 minutes ferry ride away. This would help to save on travelling expenses as so you don’t have to fly halfway across the world just to meet up with your team.

Now that you have got all these tips at your fingertips, you’re ready to start offshoring to Indonesia and take down these huge barriers.

How to start offshoring to Indonesia

If you’re not sure where to start or if you’re thinking of getting a recruiter on board, look to Glints TalentHub, our strategic offshoring solution for employers in Singapore. Our Indonesian talent are based in Nongsa Digital Park, and the team is ready to hustle and pull weights just for your hiring needs. Phew.

Click here to hop on our platform and see what TalentHub can do for your business today.