The Republic of Indonesia: Features of Eastern Culture, Business Nuances, and Halal Products

The Republic of Indonesia is a country in Southeast Asia with a population of over 270 million. Almost 90% of the country’s population is Muslim, making it the fourth-largest country in the world by population.

Despite being home to the world’s largest Muslim community, Indonesia is not constitutionally designated as a Muslim state. Indonesia is a multi-religious country, officially recognizing six religions: Islam, Catholicism, Protestantism, Buddhism, Hinduism, and Confucianism. Therefore, public holidays are unusually wide-ranging, including Eid al-Fitr, Eid al-Adha, Easter, Christmas, the New Year, Chinese New Year, and other holidays.

Negotiating and Doing Business in Indonesia

Indonesia’s business culture has been shaped by the local mentality and ethnic diversity—the country is home to approximately 300 ethnic groups. Islam, the dominant religion, also largely determines business practices. The country’s official language is Indonesian, but most international negotiations are conducted in English.

Indonesians highly value politeness and a relaxed pace of communication. Open criticism—even of competitors—is frowned upon and can be perceived as extremely negative.

Interesting features of business communication:

• Introductions are a ritual. They are unhurried, and when meeting with a large group, it is important to greet everyone. Handshakes are usually avoided at first contact.
• Punctuality is important… but not for everyone. Local entrepreneurs may be late even for important meetings, but foreign guests are expected to be precise and organized.
• Decision-making is collegial. Indonesian companies often base their policies on group consensus, but the leader always has the final say. Personal connections are of great importance. Successful collaboration is built on trust, and career advancement often depends on family and personal relationships.
• Greetings have a social connotation. Muslims often place their hand on their heart and bow their heads slightly. If there are several people in a group, the most senior person—by age or status—is greeted first. The first name is stated, followed by the title or rank.

Halal Certification System

Since the majority of Indonesia’s population is Muslim, the country has a strict halal certification system. All legal documents governing this area are posted on the official website of the Halal Product Certification Agency (BPJPH). According to the Indonesian government, goods imported, produced, or sold in the country must be halal certified.

An exception is made for products containing “haram” (prohibited) ingredients. These may not be certified, but their packaging must be clearly labeled indicating the presence of such ingredients.

Products that meet halal requirements receive the official BPJPH logo—”Halal Indonesia”—and a unique certification number.

Products containing ingredients derived from pork or pork-based products must be marked with the special “MENGANDUNG BABI” (“contains pork”) label.

Export and Import of Goods in Indonesia

Indonesia actively exports halal products, yet is not one of the world’s largest importers in this segment. Nevertheless, the country’s halal import volume remains significant: in 2023, imports were estimated at approximately US$11 billion.

The main suppliers of halal imports to Indonesia are Australia, a key exporter of meat and livestock, including beef and cattle; Brazil and Argentina, suppliers of frozen and processed meat, as well as various food products; the United States supplies ingredients for specialized food components and finished halal products; and Malaysia, the UAE, Saudi Arabia, and Turkey primarily export certified halal products, including finished goods, cosmetics, and pharmaceutical ingredients.

Trade between Russia and Indonesia

According to the Russian federal center Agroexport, Russia exported approximately 1.4 million tons of agricultural products to Indonesia in 2024. Grains (primarily wheat) accounted for the bulk of these exports. Coriander seeds (approximately 2.6%) and frozen fish (approximately 2.2%) also accounted for significant volumes.

Indonesia, in turn, exported approximately 800,000 tons of agricultural products to Russia, a 17% increase compared to 2023. These exports included potentially halal products, such as palm and babassu oil, coffee, and cocoa products.

Halal Trade Development Potential

Many Indonesian exports to Russia already meet halal requirements or can be certified. Countries are actively working to simplify procedures, standardize, and mutually recognize certificates, opening up additional opportunities for growing bilateral trade.

Accreditation of the Indonesian Agency BPJPH to the Halal Committee of the Spiritual Administration of Muslims of the Republic of Tatarstan

In October of this year, an official delegation from the Republic of Indonesia—representatives of the Halal Product Assurance Agency under the Ministry of Religious Affairs of the Republic of Indonesia (BPJPH)—visited the Halal Standards Committee of the Spiritual Administration of Muslims of the Republic of Tatarstan.

BPJPH representatives highly praised the Committee’s organization, the transparency of procedures, the professionalism of its staff, and the compliance of the certification system with international requirements.

Accreditation by one of the largest and most reputable global halal certification centers is an important step in strengthening international cooperation, global recognition of the halal standards of the Spiritual Administration of Muslims of the Republic of Tatarstan, and expanding interaction with Muslim countries, particularly in Southeast Asia. The Committee is currently awaiting a final decision from the Indonesian side on this matter.

The article was written based on materials from the website of the Russian federal center “Agroexport”, the Interfax news agency, and the Indonesian news agency Antara

Photo: freepik.com