Migration is often associated with remittances in the form of money sent back home. However, the experiences of Indonesian entrepreneurs in Malaysia and Saudi Arabia show that migration also generates valuable non-financial contributions. Through daily business activities, diaspora entrepreneurs introduce new ways of working, adapt cultural identities, build international networks, and develop entrepreneurial knowledge that benefits both host countries and Indonesia.
The researchers focused on Indonesian culinary entrepreneurs because food businesses naturally combine cultural identity, consumer preferences, service quality, branding, and business adaptation. Running a restaurant or catering business overseas requires entrepreneurs to navigate legal regulations, supplier relationships, market expectations, and cultural differences while maintaining the authenticity of Indonesian cuisine.
To understand these experiences, the research adopted an exploratory comparative case study involving two Indonesian culinary entrepreneurs—one operating in Malaysia and another in Saudi Arabia. Data were collected through in-depth interviews covering business establishment, local partnerships, cultural adaptation, customer expectations, supplier relationships, identity negotiation, and trust-building. The interview data were analyzed using thematic analysis supported by NVivo software, allowing the researchers to identify common themes across both cases.
The study identified five major themes that explain how Indonesian diaspora entrepreneurs generate social remittances through everyday business activities.
Local Partnerships Create Business Opportunities
One of the strongest findings is the importance of local partnerships.
In Malaysia, local partners helped entrepreneurs secure legal recognition, strengthen supplier networks, improve brand positioning, and gain acceptance in the local market.
In Saudi Arabia, local partnerships played an even broader role by providing access to legal procedures, suppliers, digital banking systems, and market entry opportunities.
The researchers conclude that local partners function as strategic social capital rather than merely fulfilling administrative requirements.
Cultural Adaptation Depends on Local Business Environments
The research also shows that cultural adaptation differs significantly between countries.
Malaysian business practices emphasized regulatory compliance, customer review culture, service quality, cleanliness, and positioning Indonesian food under a locally recognizable brand.
Saudi Arabian businesses required entrepreneurs to adapt their communication styles, language use, supplier negotiations, and customer service expectations to align with local cultural norms.
These differences demonstrate that successful international entrepreneurship requires country-specific cultural understanding rather than a universal business strategy.
Indonesian Culinary Identity Evolves Rather Than Disappears
Another important finding concerns culinary identity.
In Malaysia, Indonesian food retained its authentic taste while the business brand was presented as a Malaysian brand to improve consumer acceptance.
In Saudi Arabia, Indonesian cuisine was combined with Arab culinary preferences, creating hybrid food products that reflected both Indonesian heritage and local tastes.
Rather than replacing Indonesian identity, diaspora entrepreneurs continuously adapted and translated it to fit different market environments.
Trust Is Built Through Continuous Communication
Trust emerged as another critical factor.
In Malaysia, trust developed through organizational transparency, shared business values, supplier relationships, and common long-term goals.
In Saudi Arabia, trust relied more heavily on local intermediaries, gradual communication, clearly defined responsibilities, and representatives who connected entrepreneurs with local stakeholders.
The study highlights that trust is not automatically established in international business. Instead, it develops through ongoing communication and cultural understanding.
Social Remittances Extend Beyond Financial Transfers
Perhaps the study's most significant contribution is its explanation of social remittances.
In Malaysia, these appeared through business standardization, research and development, entrepreneurship education, corporate social responsibility, and knowledge sharing.
In Saudi Arabia, social remittances emerged through business knowledge transfer, trust negotiation, service adaptation, culinary hybridization, and participation in the religious tourism and Umrah market.
Across both countries, entrepreneurship became a vehicle for transferring knowledge, values, and practical business experience rather than simply generating income.
According to Ikhma Zurani, Subejo, and Roso Witjaksono of Universitas Gadjah Mada, diaspora entrepreneurship should be understood as a space where business knowledge, cultural identity, adaptive practices, ethical values, and social capital are continuously created and negotiated across national borders. Their findings suggest that entrepreneurship itself functions as an important producer of social remittances, not merely a source of economic activity.
The research carries practical implications for governments, universities, business organizations, and aspiring entrepreneurs. Indonesian entrepreneurs planning international expansion need strong cross-cultural competencies, including knowledge of local regulations, communication styles, consumer behavior, supplier systems, and partnership ethics.
The authors also recommend that Indonesian institutions and diaspora organizations establish structured mentoring programs, legal literacy initiatives, business training, and knowledge-sharing platforms so that successful entrepreneurial experiences abroad can benefit wider Indonesian communities.
Beyond entrepreneurship, the study broadens the understanding of migration itself. Instead of viewing migrants primarily as senders of financial remittances, the research demonstrates that they also serve as carriers of innovation, business expertise, professional values, and cultural exchange that contribute to economic and social development in multiple countries.
Author Profile
Ikhma Zurani is a doctoral researcher in Extension and Development Communication at the Graduate School of Universitas Gadjah Mada, Yogyakarta, Indonesia, and a lecturer in the Department of Communication Science, Universitas Riau, Pekanbaru, Indonesia. Her research focuses on development communication, diaspora entrepreneurship, transnational business, and cultural adaptation. This study was co-authored with Dr. Subejo and Dr. Roso Witjaksono, scholars from the Graduate School of Universitas Gadjah Mada specializing in extension and development communication.
Source
Zurani, I., Subejo, & Witjaksono, R. (2026). Social Remittances of Indonesian Diaspora Entrepreneurship: Cultural Adaptation and Local Business Partnership in Malaysia and Saudi Arabia. Journal of Social Interactions and Humanities (JSIH), Vol. 5, No. 2, pp. 127–142.
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