Beyond Diversity: Redefining Inclusion and Intercultural Mindedness to Break Barriers in Indonesian Workplaces

Indonesia's Cultural Complexity: The Promise and Paradox of Diversity

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Introduction

Cultural diversity is the most of Indonesia’s celebrated assets. With over 1,300 ethnic groups, hundreds of languages, and a deeply rooted sense of community, the archipelago thrives on its unique cultural mosaic. However, this diversity also presents complex challenges, particularly in workplaces where racism, patriarchal norms, and invisible stigma persist. These issues, often reinforced by historical biases and systemic inequities, hinder inclusivity and organizational progress.

The interplay of regional stereotypes, gender discrimination, and concealed identities shapes workplace dynamics across industries. For instance, employees from East Indonesia such as Papua and Nusa Tenggara frequently encounter racial biases that limit their career advancement, while patriarchal norms confine women to subordinate roles despite their qualifications. Invisible stigma, related to discrimination against employees with non-visible disabilities and hidden religious affiliations, further exacerbates exclusion in workplaces (Hofstede, 2001; Quinn & Earnshaw, 2013).

Addressing these issues requires a transformative approach in intercultural approach rooted in intercultural understanding. As a UNESCO (2022) emphasizes, intercultural dialogue fosters mutual respect and inclusion and creates equitable spaces for individuals from diverse backgrounds. By adopting this approach, Indonesian workplaces can move beyond symbolic gestures and tackle the root causes of systemic inequities.

For industries like Facility Management that thrive on creating cohesive environments across social and cultural boundaries, aligning the pillars of commercial success, community development, and environmental stewardship with the nation’s intercultural dynamics is not just an option but a necessity.

Commercial Success Rooted in Cultural Sensitivity

Cultural sensitivity is a cornerstone of effective facility management in Indonesia. Research by Hofsted (2011) underscores the importance of cultural alignment in organizational success, particularly in collectivist societies like Indonesia, where communal values often trump individual priorities.

This culturally sensitive approach not only enhances client satisfaction but also strengthens market position. A McKinsey report (2022) highlights that companies embedding cultural adaptability into their strategies outperform their peers by 30% in customer retention and satisfaction rates.

Empowering Communities Through Intercultural Understanding

Community development is deeply intertwined with the nation’s intercultural landscape. Indonesia’s wide socioeconomic disparities, where 10% of the population lives below the poverty line (World Bank, 2021), necessitate inclusive business practices. Facility management offers a unique avenue for social empowerment, particularly through localized hiring and skills training programs. By prioritizing local recruitment and fostering intercultural awareness among its employees, and by providing targeted vocational training and employment opportunities, facility management not only enhances service delivery but also contributes to social equity. Such initiatives are in line with UNESCO’s (2022) emphasis on intercultural dialogue as a tool for fostering inclusivity and reducing social fragmentation.

Moreover, these programs create ripple effect, empowering individuals to become change agents within their communities. A study with the International Labour Organization (2020) found that inclusive workplace practices significantly boost community wellbeing and economic resilience.

Environmental Stewardship as a Cultural and Operational Mandate

Environmental stewardship is particularly relevant in a country facing acute ecological challenges. Indonesia ranks among the top contributors to global plastic waste and deforestation, with devastating implications for its biodiversity and communities (WWF, 2021). Facility management companies have a critical role to play in reversing these trends as their existences are in the nexus of all industries.

Environmental initiatives that are rooted in the principles of circularity and resource optimization can draw inspiration from traditional Indigenous practices like Bali’s “Subak” water management system. Its organic waste recycling initiative converts food waste from managed facilities into fertilizer, supporting local agriculture and reducing landfill dependency.

These efforts align with Indonesia’s national sustainability targets, such as achieving a 29% reduction in greenhouse gas emissions by 2030 (Ministry of Environment and Forestry, 2023). They also resonate with global consumer trends; a Nielsen survey (2021) related that 73% of Southeast Asian consumers prefer brands committed to environmental sustainability.

Through these initiatives, facility management not only minimizes its ecological footprint but also set benchmark for other industries. By integrating cultural wisdom with modern sustainability practices, the facility management industry exemplifies how businesses can lead environmental stewardship efforts.

Real-Life Examples of Racism in Indonesian Workplaces

Ethnic Stereotyping in Corporate Hiring

Racism in Indonesia often manifests through regional stereotypes. In Jakarta’s financial sector, candidates from Papua frequently report being overlooked during recruitment, with hiring managers citing “concerns” about their ability to integrate into corporate culture. These biases are fueled by historical marginalization and limited representation in urban settings (World Bank, 2021).

One Papua graduates shared her experience of being rejected for multiple roles despite having top-tier qualifications from a prestigious university. When she confronted a recruiter, she was told by her regional background might “intimidate clients,” reflecting the deeply ingrained stereotypes that perpetuate workplace discrimination (Low, 2025).

Workplace Segmentation in Manufacturing

In industrial settings, racism often takes the form of task segregation. A manufacturing plant in West Java routinely assigned workers from Nusa Tenggara to physically demanding roles while reserving supervisory positions for employees from Java. This segmentation was justified by unfolded assumption about the physical resilience and educational capabilities of workers from marginalized regions (McKinsey & Company, 2022).

Patriarchy in the Workplace: A Persistent Challenge

Gender Disparities in Leadership

Patriarchal norms remain pervasive in Indonesia, where women are significantly underrepresented in leadership roles. In retail sector, a senior female manager in Bandung described being excluded from key decision-making meetings, with her male counterparts justifying the exclusion by saying her ‘family commitments’ might prevent her from dedicating sufficient time to her work. Despite her proven track record, she was passed over a promotion in favor of a less experienced male colleague (Hofstede, 2001).

Glass Ceilings in Tech Industries

In Indonesia’s burgeoning tech sector, patriarchal attitudes also manifest in hiring and promotion practices. Women in mid-level managerial roles often report encountering “glass ceiling” that limits their advancement. For example, a tech company in Jakarta introduced a mentorship program aimed at fostering diversity but failed to address the underlying cultural biases that discouraged female employees from applying for senior roles (Chrobot-Mason et. al., 2016).

Invisible Stigma: The Hidden Barriers

Invisible stigma, often rooted in concealed or less visible traits, remains a pervasive challenge in Indonesia workplaces. Unlike overt discrimination, this form of exclusion operates subtly, making it difficult to detect and address. Employees with non-visible disabilities, minority religious affiliations, or those associated with professions perceived as lower status frequently experience this stigma. This form of discrimination not only undermines individual potential but also perpetuates inequities that limit social mobility and organizational diversity.

Discrimination Against Employees with Non-Visible Disabilities

Invisible stigma poses unique challenges, as it often goes unacknowledged by both employers and employees. A case in point is a healthcare provider in Jakarta, where employees with chronic illnesses reported being denied reasonable accommodations. One employee shared that her request for flexible working hours was rejected, with her supervisor questioning whether she could handle the “pressures” of the role. This reflects a broader issue of ignorance and prejudice toward non-visible disabilities (Quinn & Earnshaw, 2013).

This form of stigma highlights a broader issue in workplaces: the lack of awareness and policies to address the needs of employees with invisible challenges. Such exclusionary practices not only harm individuals but also limit organizational productivity and innovation.

Religious Minorities in Corporate Spaces

Employees from minority religious groups frequently face covert discrimination. In a multinational corporation based in Surabaya, a Hindu employee from team-building activities scheduled during her religious holidays. While these actions were not overtly discriminatory, they signaled a lack of cultural sensitivity, leaving her feeling marginalized within her team (UNESCO, 2022). Such incidents emphasize the importance of fostering inclusivity through intercultural dialogue and culturally sensitive practices.

The “Kasta (Castes)” Hierarchy and Sectoral Inequity

A profound example of invisible stigma in Indonesia is the societal perception of kasta, a culturally ingrained hierarchy that assigns varying levels of prestige to different professions and industries. This concept transcends traditional cultural contexts and infiltrates the workplace, creating systemic barriers to upward mobility. Employees in outsourcing sectors are often perceived as belonging to “lower kasta.” This stigmatization marginalizes their contributions and traps them in roles with limited pathways for career advancement cross sectors/ industries.

By contrast, sectors like energy and mining sectors are considered part of the “higher kasta,” offering more prestige, opportunities, and respect. For instance, an employee in an outsourcing company who demonstrates strong managerial skills may struggle to transition to roles in the energy sector, for example, due to biases that undervalue their leadership experience. These perceptions reinforce a rigid hierarchy, discouraging cross-sectoral mobility and perpetuating inequities in Indonesia’s market. Quinn and Earnshaw (2013) emphasize that such stigma, while often unspoken, create profound psychological and professional barriers, leaving talented individuals underutilized and undervalued. This dynamic not only limits individual growth but also deprives industries of diverse talent pools, hindering economic progress.

The Cost of Discrimination: Impeding Organizational Success

The effect of racism, patriarchy, and invisible stigma extend beyond individuals, impacting organizational performance and reputation. Discriminatory practices undermine employee engagement, reducing productivity and increasing turnover rates. The International Labour Organization (2020) notes that workplaces with systemic inequities struggle to attract and retain top talent, limiting their competitive advantage.

Furthermore, organizations that tolerate exclusionary practices risk reputational damage in an era where stakeholders prioritize equity and inclusion. According to McKinsey & Company (2022), diverse teams outperform their peers by 35% in profitability and underscore the value of inclusivity as a strategic asset.

Intercultural Understanding: A Framework for Inclusion

Education and Awareness

Education is the first step toward dismantling systemic inequities. Organizations must implement culturally tailored training programs that address unconscious bias. Incorporating principles like Bhinneka Tunggal Ika (Unity in Diversity) and gotong royong (mutual cooperation) reinforces Indonesia’s national values (Hofsted, 2001). Storytelling sessions, where employees share their experiences of discrimination, have proven effective in fostering empathy and mutual understanding (Baumeister & Leary, 1995).

Policy Development

Comprehensive anti-discrimination policies are critical to institutionalizing inclusion. For example, a blind hiring system that removed regional and gender indicators from resumes resulted in a 30% increase in hires from underrepresented groups and demonstrated the potential of structural reforms (Phetmisy et. al., 2020).

Support Systems

Employee Resource Groups (ERG) can provide safe spaces for marginalized employees to voice concerns and access resources. Quinn and Earnshaw (2013) highlight the importance of such mechanisms in addressing invisible stigma.

Leadership Accountability

Inclusive leadership is critical to fostering a culture of equity. Diversity scorecards can track regional representation and employee wellbeing, holding leaders accountable for progress (Nalty, 2016).

Breaking the Cycle of Sectoral Stigma

Addressing the stigma associated with kasta in sectors requires intentional and collaborative interventions. One powerful approach is to foster partnerships that leverage diverse perspectives and demonstrate the value of contributions from all industries. For example, initiatives like collaborative efforts to provide policy advocy to the government, such as those led by organizations like Castle Asia, AmCham Indonesia and soon BritCham Indonesia, can bring together representatives from different sectors of industries to form insights based on latest situation and circumstances of economy, even politics. By involving professionals from industries perceived as "lower status," alongside those from high-prestige sectors these efforts highlight the strengths and unique contributions of each industry to the economy. This kind of collaboration not only advances common goals but also shifts perceptions about the importance of every sector in shaping national progress.

By addressing the invisible stigma tied to sectoral hierarchies, Indonesian workplaces can foster inclusivity, enable social mobility, and unlock untapped potential across all levels of the labor market. Organizations that embrace this collaborative approach position themselves as leaders in equitable talent development and contributors to a more inclusive and resilient economy.

The Role of Intercultural Dialogue in Driving Change

In a nation as diverse as Indonesia, commitment to fostering intercultural dialogue is crucial for bridging divides and fostering mutual understanding. As RSIS (2025) notes, intercultural dialogue is essential for building cohesive communities, particularly in societies marked by multifaceted identities.

Facility management company who actively promotes intercultural awareness through its training vocational programs equips its employees with the skills to navigate cultural complexities. These initiatives foster a workplace culture of respect and inclusion, enhancing both employee satisfaction and operational efficiency. Such practices underscore the broader role of facility management as a facilitator of social cohesion. By creating spaces that respect and celebrate diversity, facility management contributes to a more inclusive society. A Harvard Business Review study (2020) found that organizations fostering intercultural competence are 45% more likely to achieve long-term growth, underscoring the strategic value of such efforts.

Opportunities for Transformation

Intercultural understanding unlocks significant opportunities for Indonesia’s industries. Research by McKinsey & Company (2022) shows that organizations with diverse teams are more innovative and resilient. By fostering inclusivity, companies can enhance employee engagement, drive innovation, and build long-term competitive advantages.

Moreover, addressing systemic inequities aligns with Indonesia’s Sustainable Development Goals (SDGs), reinforcing its commitment to reducing inequalities and promoting decent work (World Bank, 2021).

Conclusion: A Call to Action

Racism, patriarchy, and invisible stigma remain pervasive challenges not only in Indonesian’s workplaces, but it happens around the worlds. By adopting intercultural understanding as a guiding framework, organizations can create equitable environments where diversity is celebrated, barriers are dismantled, and all employees can thrive.

This is a call to action for leaders across sectors. In a world increasingly marked by division, businesses have a unique opportunity and responsibility to act as unifying forces. Embrace intercultural dialogue as a strategic necessity. By embracing diversity, fostering dialogue, and prioritizing sustainability, industries can create value that transcends profits, building a legacy of positive impact. In addition, by fostering inclusion and equity, organizations can unlock the potential of their diverse workforces, drive innovation, and contribute to a more equitable society.

Let us rise to the challenge, drawing inspiration from Indonesia’s rich cultural tapestry to build a future where businesses, communities, and the environment thrive in harmony.

The time to act is now.

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About the Writer

Yohanes Jeffry Johary is Managing Director of OCS Indonesia, a global British facility management company with 125 years of rich history of 120,000 employees in making people and places the best they can be. As Managing Director, Jeffry leads team of 15,000 employees across 1,800 sites with a focus on innovation, sustainability, and employee wellbeing in the facility management industry. Graduated at The OCS Alchemist 4.0 Program from Class 2024. He is also pursuing a postgraduate degree in Master of Science in Business Psychology at the University of East London, specializing in Biopsychosocial studies. Combining his leadership experience and academic insights including 21-year-academic experience when he became a lecturer in Atma Jaya Catholic University, Jeffry is dedicated to integrating psychological principles into organizational strategies, fostering healthier and more resilient workplaces.