For Japanese business owners and managers operating in Indonesia, financial interactions with local staff and business partners are an unavoidable reality. Many may feel unsure about how to respond when employees or associates ask to borrow money. In Indonesia, cultural and religious influences shape attitudes toward lending and borrowing, making them significantly different from those in Japan or Western countries.

This article explores the mindset of Indonesians regarding money, their perspectives on lending and borrowing, and provides practical advice on how to handle requests for loans from employees or business associates.

Indonesians’ Money Mindset and Spending Habits

Indonesians often see money as something to be spent, not saved. After receiving their salary, many people quickly spend it. For example, supermarkets and malls are usually crowded right after payday, with shopping carts full of goods.

They also spend actively on tourism and leisure. During long holidays, tourist destinations are often packed. Even lower-income groups tend to spend money as soon as they get it, showing less focus on saving or budgeting. This is influenced by unstable daily income and a cultural tendency to prioritize current life over future planning.

Religious Influences on Lending and Borrowing

Indonesia’s majority Muslim population shapes how people handle money. Islamic teachings encourage giving to those in need through zakat and sadaqah. Helping others financially is seen as a moral and religious responsibility.

Islam also forbids charging interest (riba). Lending money to earn interest is not allowed. While traditional banking interest is discouraged, Islamic banks now provide financial services that follow religious principles.

Lending and Borrowing in Daily Life

Lending and borrowing money among friends and family is common in Indonesia. This reflects a strong culture of mutual help and tight social networks.

However, loans are not always repaid. Lenders should assume the money may not come back—or choose not to lend at all. Indonesians also value commissions or referral fees, which can motivate them to act quickly when incentives are offered.

Managing Financial Requests in Business

For Japanese business owners in Indonesia, money requests from staff or partners are common. Employees may ask for salary advances or loans.

Lending money casually can lead to repayment problems or strained relationships. It is safer to assume the loan may not be repaid or to avoid lending altogether. Businesses can also use commission-based incentives to motivate employees. Understanding local culture and financial habits is key to handling money matters smoothly.

When an Indonesian Asks to Borrow Money

How to Say No and Important Points When Lending with Conditions

When running a business in Indonesia, you may encounter situations where local staff or acquaintances ask, “Can you lend me some money?” In Indonesia, borrowing and lending money among family or friends is common, and the culture often assumes that the money might not be returned. However, if there is a business relationship, it is important to respond carefully.

Below are two common approaches faced by Japanese managers or business owners:

1. Refusing to lend money

2. Lending money with conditions

Both cases are explained, including how to maintain relationships and respect local culture.

Refusing to Lend: How to Say “No” Without Damaging Relationships

In Indonesia, the spirit of mutual help is highly valued. Especially among close relations, refusing can be seen as cold or uncaring. However, considering your position and the impact on work, it is often safer not to lend money indiscriminately.

Polite Phrases to Refuse

• (Sorry, I can’t help financially right now)

• (I have a personal policy of not lending money to anyone)

• (If I help now, I’m afraid it will become a habit)

Key Points

• Showing a general “always say no” policy makes it easier for the other person to accept.

• Frame the reason around yourself (“I can’t…”) to avoid offending others.

• Mentioning company or family rules helps reduce potential conflicts.

Lending with Conditions: Be Prepared to Treat It as a “Gift”

If you really want to help, or in urgent cases—such as illness or funeral expenses—lending money with conditions can be an option.

However, it is important to recognize that the money may not be returned.

How to Lend with Conditions

• Set a clear limit: “Only this time”
  Tell them from the start: “This is a one-time help; I can’t do this again.”

• Limit the amount
  Don’t always lend the full amount requested. Give only what you can afford.

• Document repayment terms and deadlines
  Note “when and how” the money will be repaid, using a memo, email, or WhatsApp.

• Agree on payroll deduction if the borrower is an employee
  If the borrower is staff, you can agree on gradual payroll deductions.

Alternative Support Options

If you want to help without giving cash:

• “I can’t lend money, but I can buy groceries for you.”

• “Before payday, we can check if the company can advance your salary.”

• “As non-repayable support, I’ll give Rp500,000 this time.”

This method allows you to provide assistance without direct financial risk.

Important Note: Lending Once Can Lead to Repeated Requests

In Indonesia, there is a common perception that someone who has lent once will lend again. In other words, if you give once, you may be asked again in the future.

Therefore, it is very important to set rules and boundaries from the beginning to avoid future problems.

Summary

Borrowing and lending money in Indonesia is not just an economic transaction; it is strongly influenced by culture, religion, and social relationships. In a society that values mutual help, borrowing is common, but the risk of non-repayment is high. Japanese people applying their usual approach may face problems.

In a business context:

• Refusing to lend is a legitimate option and does not necessarily harm trust.

• If lending, it should be conditional or treated as a gift/assistance.

The most important point is to make decisions rationally, respect the local culture, and act appropriately according to your position and the relationship with the other party.

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