The Premise: Silicon Valley sales methodologies—SaaStr playbooks, MEDDIC frameworks, The Challenger Sale—often fail in Jakarta. In Indonesia, you are not selling a product; you are selling trust to a specific hierarchy. This guide dissects the unspoken rules of selling to Conglomerates ("The Dragons"), State-Owned Enterprises (BUMNs), and the emerging Tech-Native segment.
/// Reality Check
Average enterprise sales cycle in Indonesia: 9–18 months. Average payment collection: 90–120 days post-invoice. If your startup cannot survive this cash-flow lag, enterprise sales will kill you before it saves you.
*Indicative ranges based on founder/operator experience; varies widely by segment, sponsor strength, and procurement path.
Executive Summary: The Indo B2B Reality
- 01 Cold Calling is Dead: Most deals start via WhatsApp introduction or warm referral. Email open rates for cold outreach are often extremely low.
- 02 The "Bapak" Factor: Decisions are top-down. If the Director (Bapak) doesn't nod, the deal dies—no matter how much the managers love your software.
- 03 TOP 90+: Cash flow kills startups. Enterprise payment terms (Term of Payment) are standard 60–90 days, often slipping to 120. Price accordingly.
- 04 Relationship > Product: A 10x better product loses to the incumbent vendor who plays golf with the CEO. Sales is relationship arbitrage.
- 05 Once You're In, You're In: Churn in Indonesian enterprise is exceptionally low. Switching vendors is a procurement nightmare. Crack one conglomerate, keep them for a decade.
01. The Cultural Moat: Relationship > Product
In the West, if your product has 10x features at 0.5x price, you win. In Indonesia, if your product is 10x better but the buyer doesn't know you, you lose to the incumbent vendor who shares a WhatsApp group with the procurement head.
The Trust Hierarchy (Silaturahmi)
Business is viewed as an extension of friendship. This is embodied in the concept of Silaturahmi—maintaining bonds, visiting during Lebaran, remembering birthdays. You can't treat enterprise sales as transactional here. The "Sales Meeting" is the result of a relationship, not the start of one.
"Hi Pak, I'm sending you a calendar invite for a 30-min demo on Tuesday at 2 PM to show you our ROI calculator."
RESULT: Ignored / Blocked. Viewed as aggressive, transactional, and impolite.
"Selamat siang Pak Budi. Semoga sehat selalu. Saya dikenalkan oleh Pak Agus dari [Company]. Kalau Bapak ada waktu minggu depan, saya ingin silaturahmi dan belajar soal [Industry Trend]."
RESULT: Accepted. No hard pitch. Just "Ngopi" (Coffee). Relationship starts.
The Referral Economy
Cold outreach has near-zero conversion. Warm introductions have significantly higher meeting acceptance rates. Your network is your pipeline.
| Referral Source | Conversion to Meeting (Field Range) | Notes |
|---|---|---|
| Cold Email | <5% | Often filtered as spam. PAs delete without reading. |
| Cold LinkedIn | 5–10% | Slightly better. Still viewed as "sales tactic." |
| Warm WA (2nd degree) | 30–40% | "Pak Agus told me to reach out." Social proof. |
| Warm WA (1st degree) | 50–70% | Direct introduction from trusted contact. Best conversion. |
| Investor Introduction | 60–80% | Leverage your VC's network aggressively. |
Tactical Note: Building Your Referral Engine
Every meeting should end with: "Pak, siapa lagi yang mungkin cocok untuk saya kenal?" (Who else might be good for me to know?)
Indonesian executives are generous with introductions if you've built rapport. Ask explicitly. Aim for 2–3 referrals per meeting. This compounds.
02. Mapping the Organization: The "Bapak" System
Indonesian corporate structures are rigidly hierarchical. Understanding the titles is not enough; you must understand the Political Influence and the unwritten power dynamics.
The "Bapak" (The Decider)
Usually C-Level, GM, or Division Head. Paternalistic figure. Does not care about features. Cares about: Legacy, Safety, and Reputation.
Pitch Strategy: "Pak, ini akan membuat divisi Bapak jadi yang paling inovatif di grup." (Appeal to prestige and legacy.)
Risk Mitigation: "Sudah dipakai oleh [Competitor/Peer Company]. Bapak tidak sendirian." (Social proof to reduce personal risk.)
The "Gatekeeper" (Secretary / Ajudan / PA)
Never underestimate them. They control the calendar and filter WhatsApp messages. In SOEs, the PA often has more practical power than junior directors.
Strategy: Treat with extreme respect. Token hospitality (snacks, coffee, pastries) when visiting is appreciated. Remember their names. Say "Terima kasih banyak, Bu/Pak [Name]." Keep it nominal, never cash, and always follow the client's gifting policy.
Warning: Offending the PA can permanently close a door. They talk to other PAs. Reputations spread.
The "User" (The Champion)
Mid-level managers who actually suffer from the problem you solve. They will love your product but cannot sign the check.
Strategy: Arm them with ammunition. Create a 1-page PDF summary in Bahasa Indonesia they can print and put on Bapak's desk. Make them look good internally.
Critical: Never bypass them to go directly to Bapak. They will sabotage you. Build the coalition bottom-up, then orchestrate the Bapak meeting together.
The "Blocker" (Procurement / IT Security / Legal)
They have veto power but rarely championing power. Their job is to say "no" and protect the organization from risk.
Strategy: Pre-empt objections. Prepare compliance docs, security certifications (ISO 27001, SOC 2), and vendor registration paperwork before they ask. Remove friction.
The Stakeholder Map (Template)
For every enterprise deal, map these roles explicitly. Update weekly.
| Role | Name | Influence | Sentiment | Last Touch |
|---|---|---|---|---|
| Bapak (Decider) | [Name] | HIGH | [+/-/Neutral] | [Date] |
| Gatekeeper | [Name] | MEDIUM | [+/-/Neutral] | [Date] |
| Champion | [Name] | MEDIUM | [+/-/Neutral] | [Date] |
| Blocker | [Name] | VETO | [+/-/Neutral] | [Date] |
03. Customer Segmentation: Dragons, BUMNs, and Tech-Natives
Not all Indonesian enterprises are the same. Sales motion, pricing, and timeline vary dramatically by segment.
Segment 1: The "Dragons" (Konglomerat)
Sinarmas, Lippo, Salim, Djarum, Astra, Bakrie, Ciputra, Triputra. Family-controlled conglomerates spanning multiple industries.
| Attribute | Reality |
|---|---|
| Decision Speed | Slow (12–18 months). Multiple approval layers. But once decided, execution is fast. |
| Key Buyer | Division Head or Group CTO. Family members rarely involved in vendor selection (unless tech-focused family member like 2nd/3rd gen). |
| Pricing Sensitivity | Low. Can pay premium. Care more about reliability, reputation, and "enterprise-grade" perception. |
| Expansion Potential | Massive. Land one subsidiary → expand to 10+. Group-wide rollouts happen. |
| Payment Terms | TOP 60–90. Generally reliable payers once PO is issued. |
Segment 2: BUMNs (State-Owned Enterprises)
Telkom, Pertamina, PLN, Bank Mandiri, BRI, Garuda, Pelindo. Government-owned, politically influenced, procurement-heavy.
| Attribute | Reality |
|---|---|
| Decision Speed | Very Slow (12–24 months). Budget cycles, tender processes, political considerations. |
| Procurement | Formal tender (e-procurement). TKDN requirements. Domestic content rules. |
| Key Entry Point | BUMN subsidiaries (Anak Perusahaan). Easier procurement, faster decisions. Then expand to parent. |
| Pricing Sensitivity | Medium. Must justify to auditors (BPK). Need clear ROI documentation. |
| Payment Terms | TOP 90–120. Budget disbursement can delay further. Plan for 120+ days. |
| Compliance Risk | High. Never engage in facilitation payments. BPK audits are real. Document everything. |
/// BUMN Compliance Warning
BUMN contracts are subject to BPK (State Audit Board) review. Any hint of irregularity can result in contract cancellation and reputational damage. Maintain impeccable documentation. Never discuss or entertain "facilitation" requests—walk away and document the interaction.
Segment 3: Tech-Native Enterprises
Gojek, Tokopedia, Traveloka, Bukalapak, OVO, Dana, Ruangguru. VC-backed or post-IPO tech companies.
| Attribute | Reality |
|---|---|
| Decision Speed | Fast (3–6 months). Familiar with SaaS. Engineering-led buying. |
| Key Buyer | VP Engineering, CTO, or Product Lead. Technical evaluation matters. |
| Pricing Sensitivity | High. Cost-conscious post-2022. Will negotiate aggressively. Compare to US pricing. |
| Payment Terms | TOP 30–60. Some will prepay annually for discount. |
| Churn Risk | Higher than traditional enterprise. Will build in-house if your product is not sticky. |
04. The Sales Motion: From "Ngopi" to PO
Phase 1: WhatsApp Etiquette
Email is for contracts and formal documentation. Business happens on WhatsApp.
Instant to same-day. If a client messages you on WhatsApp at 9 PM on Sunday, reply. It shows commitment and "dedication" (dedikasi). Late responses signal you don't prioritize them.
Start formal: "Selamat pagi Pak/Bu [Name]..." Only switch to informal ("Siap Pak", "Baik Mas") after they do. Mirror their communication style.
Avoid unless you are very senior or they send them first. Stick to text. Voice notes can be seen as presumptuous from a vendor.
Send personalized Lebaran, Natal, Imlek, and Nyepi greetings. Use their name. This is relationship maintenance, not spam.
Sample WhatsApp Scripts
"Selamat siang Pak Budi, semoga sehat selalu. Perkenalkan saya [Name] dari [Company]. Saya dikenalkan oleh Pak Agus (dari [Company]). Kalau Bapak ada waktu minggu depan, saya ingin silaturahmi dan belajar tentang [topic]. Terima kasih banyak Pak 🙏"
"Pak Budi, terima kasih banyak untuk waktunya hari ini. Sangat senang bisa belajar langsung dari Bapak. Sesuai pembicaraan, saya lampirkan [document]. Kalau ada pertanyaan, saya siap bantu kapan saja. Salam hormat 🙏"
"Selamat pagi Pak Budi, semoga sehat. Saya ingin follow up terkait proposal yang sudah kita diskusikan. Apakah ada yang bisa saya bantu untuk mempermudah proses internal? Siap support kapan saja Pak."
Phase 2: The Meeting (Asal Bapak Senang)
"Asal Bapak Senang" (ABS) translates to "As long as the Boss is happy." In meetings, junior staff will rarely contradict the Boss publicly.
War Room Rule #1
Never ask "Does anyone have questions?" and expect a junior to speak up in front of the Director. They won't. You must either: (1) ask questions indirectly, (2) break into smaller groups later, or (3) follow up 1-on-1 with the Champion after the meeting.
- • Arrive 10–15 minutes early. Being late is deeply disrespectful.
- • Greet the most senior person first. Use "Bapak/Ibu" + surname or title.
- • Bring printed materials. Many senior executives prefer paper.
- • Accept offered drinks (tea, coffee). Refusing can be seen as rude.
- • Small talk first. Don't jump to business. Ask about family, recent trips, industry news.
- • Keep slides simple. Heavy text is ignored.
- • Lead with social proof: "Sudah dipakai oleh [Competitor/Peer]."
- • Avoid aggressive claims. Understate, then overdeliver.
- • Have Bahasa Indonesia materials ready, even if meeting is in English.
Phase 3: The PoC Trap
Indonesian enterprises love free Proof of Concepts (PoC). They will run a pilot for 6–12 months for free if you let them. PoC purgatory is real.
- • "Let's do a 3-month free pilot and see."
- • No defined success criteria.
- • No commitment to purchase post-PoC.
- • Scope creep: "Can you also add X?"
- • Paid pilot only. Even IDR 10M signals commitment.
- • "Conditional PO": Contract signed before PoC, with exit clause only if technical KPIs missed.
- • Time-boxed: 30–60 days maximum.
- • Defined success metrics in writing.
Script: Pushing Back on Free PoC
"Pak, kami sangat ingin support Bapak. Untuk memastikan kami bisa dedikasikan tim terbaik dan resource yang cukup, kami minta komitmen pilot berbayar sebesar [X]. Ini juga menunjukkan keseriusan kedua belah pihak. Bagaimana menurut Bapak?"
05. The Procurement Minefield
You have convinced the CEO. The User loves it. Now you enter the dungeon of Procurement—where deals go to die.
| Obstacle | The Reality | The Counter-Move |
|---|---|---|
| Vendor Registration | Requires 15–25 documents (NIB, NPWP, Akta Pendirian, SIUP/TDP legacy, bank references). Can take 1–3 months. | Use a Reseller/SI Partner already registered. Give them 15–20% margin. Speed is worth it. |
| TKDN Requirement | BUMNs and government procurement often target TKDN + BMP (Bobot Manfaat Perusahaan) ≥ 40%. Verify current thresholds for your sector. | Partner with local SI. Localize hosting (IDC, Biznet). Document local employment. |
| "Envelope" Requests | Implicit requests for kickbacks (illegal under Indonesian anti-corruption law and FCPA if US-nexus). | Strict Compliance. "Kami diaudit oleh Big 4 dan investor asing." Blame the investors. Never comply. Document and walk away. |
| Payment Terms (TOP) | TOP 60–90 is standard. Often slips to 120. BUMN can stretch to 150+. | Price high, then discount for TOP 30. Use invoice/supply-chain financing via banks, multifinance, or OJK-regulated platforms (availability varies—verify current status). Factor this into CAC. |
| Legal Redlines | Enterprise legal teams will redline everything. Unlimited liability, local jurisdiction, penalty clauses. | Have pre-approved fallback positions. Know your walk-away points. Liability caps and arbitration clauses are hills to die on. |
Vendor Registration Checklist
Prepare these documents proactively. Having them ready cuts registration time by 50%.
- ☐ NIB (Nomor Induk Berusaha)
- ☐ Akta Pendirian + Perubahan Terakhir
- ☐ SK Kemenkumham
- ☐ NPWP Perusahaan
- ☐ KTP Direktur
- ☐ Surat Keterangan Domisili
- ☐ Bank Reference Letter
- ☐ 3 Years Financial Statements
- ☐ SPT Tahunan (Annual Tax Return)
- ☐ ISO 27001 / SOC 2 Certificate
- ☐ Company Profile
- ☐ Client Reference List
06. Pricing Strategy: The Indonesia Discount
Indonesian enterprises expect "Indonesia pricing"—typically 40–60% of US/Singapore list prices. Structure accordingly.
| Pricing Model | Works For | Watch Out |
|---|---|---|
| Per-Seat/User | Productivity tools, CRM, collaboration | Shelfware risk. They'll buy 50 seats, use 10. Churn at renewal. |
| Usage-Based | API, infrastructure, data | Budget unpredictability scares procurement. Offer caps/tiers. |
| Platform Fee + Usage | Fintech, marketplace infra | Best of both worlds. Predictable base + upside. |
| Outcome-Based | Marketing, sales enablement | Aligns incentives but hard to measure. Define metrics precisely. |
Pricing Psychology
- Price high, discount later. Indonesian buyers expect negotiation. If you quote final price, they'll push for 20% off anyway. Build buffer.
- Annual prepay discount. Offer 15–20% discount for annual prepay. Improves your cash flow, locks in the customer.
- Multi-year discount. 3-year contracts with 10–15% discount. Reduces churn, increases LTV.
- Payment term trade-off. "We can do TOP 30 at this price, or TOP 90 at +10%." Make them choose.
The Pricing Waterfall
Map your effective price after all adjustments. Know your floor.
07. Closing: Contracts and Compliance
A contract in Indonesia is often viewed as the start of a relationship and ongoing negotiation, not the end.
Many documents that state monetary value are subject to stamp duty (Bea Meterai) of IDR 10,000, commonly applied to transactions above IDR 5,000,000. For e-sign flows, use e-Meterai via approved channels so the document is properly stamped for Indonesian practice.
English-only agreements can create enforceability risk. Best practice: use a bilingual (Bahasa Indonesia + English) agreement, side-by-side.
Indonesian courts are unpredictable for commercial disputes. Push for BANI (Indonesian arbitration) or SIAC (Singapore) arbitration clauses. Never accept exclusive Indonesian court jurisdiction if avoidable.
Enterprise legal will push for unlimited liability. This is non-negotiable for startups. Standard fallback: liability capped at 12 months of fees paid. Carve out gross negligence/willful misconduct.
Contract Negotiation Redlines
| Issue | Their Position | Your Fallback | Walk Away? |
|---|---|---|---|
| Liability | Unlimited | 12 months fees, excluding gross negligence | Yes |
| Jurisdiction | Indonesian courts only | BANI or SIAC arbitration | Case-by-case |
| IP Ownership | All customizations belong to client | Core IP remains yours; client owns data only | Yes |
| Penalty Clauses | Harsh penalties for SLA breach | Service credits, capped at % of monthly fees | Case-by-case |
| Auto-Renewal | No auto-renewal | Auto-renew with 60-day notice to cancel | Flexible |
08. Channel Strategy: Resellers and System Integrators
For many enterprise deals, going through a reseller or System Integrator (SI) is not optional—it's the only viable path.
When to Use a Channel Partner
- • You're not registered as a vendor (takes 1–3 months)
- • BUMN deal requiring TKDN compliance
- • Need local implementation/support capacity
- • Partner has existing relationship with buyer
- • Deal size doesn't justify direct sales cost
- • Strategic account (want direct relationship)
- • High-touch, complex sale requiring your expertise
- • Already vendor-registered
- • Tech-native buyer comfortable with direct SaaS
- • Deal size justifies dedicated account team
Partner Economics
| Partner Type | Typical Margin | Value-Add |
|---|---|---|
| Referral Partner | 5–10% | Introduction only. You close the deal. |
| Reseller | 15–25% | Vendor registration, invoicing, collections. You do sales/support. |
| VAR (Value-Added Reseller) | 20–30% | Sales, implementation, L1 support. You provide product/L2+. |
| System Integrator | 25–40% | Full solution sale, customization, implementation, ongoing support. |
Partner Selection Criteria
- Existing relationships: Do they already sell to your target accounts?
- Technical capability: Can they implement and support without hand-holding?
- Sales capacity: Do they have hunters or just farmers?
- Financial stability: Will they be around in 3 years?
- Exclusivity expectations: Avoid exclusive arrangements early. Test first.
09. Building the Sales Team
Hiring Profile: The "Indo Enterprise AE"
The ideal Indonesian enterprise AE is a rare breed: technical enough to demo, senior enough to meet Directors, and patient enough for 12-month cycles.
| Attribute | What to Look For |
|---|---|
| Background | Ex-SI (Accenture, Deloitte, local SIs), ex-Oracle/SAP/Salesforce, ex-Telco enterprise sales |
| Network | Existing relationships in your target verticals. Ask for specific names in interviews. |
| Language | Fluent Bahasa Indonesia (native-level). English for docs/internal. Many enterprise buyers prefer Bahasa. |
| Patience | Comfortable with 9–18 month cycles. Not chasing quick wins. |
| Gravitas | Senior enough to sit across from Directors without intimidation. Title matters. |
Compensation Structure
70:30 or 60:40. Higher base than US norms—long sales cycles mean variable is hard to earn quickly.
Conservative. $300K–$500K annual quota for enterprise AE is realistic. Adjust for ACV.
2x accelerator above quota. Uncapped commission if possible—motivates top performers.
Commission paid on cash collected, not booking. Protects against TOP 120+ scenarios.
Team Structure (Scaled)
| Stage | ARR | Team Composition |
|---|---|---|
| Founder-Led | $0–$500K | Founder + 1 SDR. Founder closes all deals. |
| First Hire | $500K–$1M | 1 Senior AE (player-coach) + 1 SDR. Founder still involved in strategic deals. |
| Team | $1M–$3M | 2–3 AEs + 2 SDRs + 1 Sales Ops/Enablement. Consider Head of Sales. |
| Scaled | $3M+ | VP Sales + Team Leads (by vertical/segment) + AEs + SDRs + SE + Sales Ops. |
10. Sales Metrics: What to Track
| Metric | Definition | Indonesia Benchmark |
|---|---|---|
| Sales Cycle | First meeting → Closed Won | 6–18 months (segment-dependent) |
| Win Rate | Closed Won ÷ Qualified Opportunities | 15–30% (enterprise) |
| ACV | Average Contract Value (annual) | $30K–$150K (varies by segment) |
| CAC | S&M Cost ÷ New Customers | Plan for 18–24 month payback |
| DSO | Days Sales Outstanding (collection time) | 90–120 days (plan for 120+) |
| NRR | Net Revenue Retention (expansion – churn) | >110% target (low churn, upsell potential) |
| Pipeline Coverage | Pipeline ÷ Quota | 4–5x (higher than US due to longer cycles) |
The Cash Collection Problem
Booking ≠ Cash. Many Indonesian startups have died with "great ARR" on paper but empty bank accounts. Track DSO obsessively. Invoice early. Follow up relentlessly. Consider invoice financing for large receivables.
Rule of thumb: Your cash buffer should cover 150 days of AR + 60 days operating expenses.
Final Thought: The Long Game
Selling to an Indonesian Conglomerate or BUMN takes 9–18 months. It is a marathon of coffees, WhatsApps, and waiting. You will question if it's worth it. It is.
Once you are "In," you are In. Churn in Indonesian enterprise is exceptionally low because switching vendors is a procurement nightmare. If you crack the conglomerate, you have a customer for a decade.
The Compounding Effect
The Indonesian enterprise market rewards patience, relationships, and local understanding. Play the long game. Build trust. The compounding returns are worth it.