Jusuf Kalla and the Chinese<\/p>\n
Ivan Wibowo
\nJakarta<\/p>\n
From the names on the two presidential tickets in the Sept. 20
\nelection runoff -- Susilo Bambang Yudhoyono-Jusuf Kalla and
\nMegawati Soekarnoputri-Hasyim Muzadi -- South Sulawesi
\nbusinessman Kalla's is the most controversial for Chinese-
\nIndonesians.<\/p>\n
Rumors have been circulating among those of Chinese descent of
\nKalla's anti-Chinese sentiment, despite his repeated denials. On
\nhis official website, www.jusufkalla.com, he says, \"Favoritism
\nfor pribumi (indigenous) businessmen should be reaffirmed and
\nmaintained.\"<\/p>\n
Kalla also stated his full support for a variety of old
\ngovernment policies that afforded special treatment for so-termed
\nindigenous businesspeople and limited the expansion of the
\nChinese community.<\/p>\n
Economic policies such as System Benteng (fortress system),
\nthe Asaat Movement, Government Regulation No. 10\/1959, credit for
\nsmall and medium-sized enterprises and controls over the
\ndistribution of staple commodities were among his economic
\nbeliefs.<\/p>\n
The younger business generation of Chinese descent is not
\nfamiliar with these terms, but for their older counterparts these
\npolicies provide bitter memories.<\/p>\n
System Benteng was introduced in 1950 by welfare minister
\nJuanda to provide security for pribumi importers by giving them
\nspecial permits and other supportive treatment. In practice, it
\nwas those of Chinese descent, ultimately, who ran businesses, as
\nthe pribumi preferred to outsource the work instead of doing the
\nimporting themselves. Haji Kalla and the Bakrie family were two
\npribumi entrepreneurs that managed to develop their business
\nbecause of the system. The policy was stopped in 1954.<\/p>\n
The Assaat Movement was introduced by Indonesian official
\nAssaat in 1956 and called for discriminatory acts against all in
\nthe Chinese-Indonesian business community.<\/p>\n
PP No.10\/1959 stipulated that nobody of Chinese descent was
\nallowed to have a business beyond regental level. The armed
\nforces vehemently supported implementation of the regulation,
\nresulting in 130,000 Chinese-Indonesians leaving this country.<\/p>\n
The KIK\/KMPK, which began in 1974, was credit schemes only for
\npribumi small and medium-sized enterprises. The government
\nstopped the scheme in 1988.<\/p>\n
Distribution of staple commodities become a matter of hot
\ndebate after the 1998 anti-Chinese riots in the capital that made
\nthe Chinese take refuge. Kalla said such a policy would provide
\nan opportunity for the pribumi to handle distribution.<\/p>\n
For Kalla, this series of policies amounted to affirmative
\naction, \"to limit the expansion and existence of nonindigenous
\nIndonesians, and 75 percent of the distribution of staple
\ncommodities should be in the hands of indigenous people\".<\/p>\n
He disregarded various critics who underlined the failure of
\nthese discriminatory rulings, such as late, prominent economist
\nSumitro Djojohadikusumo, who said, \"Of 10 indigenous businessmen
\nonly three managed to grow because of these affirmative policies:
\nThe rest remained as benalu (leeches).\"<\/p>\n
Former Malaysian prime minister Mahathir Muhammad introduced
\nsimilar affirmative action, the New Economic Policy, in 1971, to
\nsupport bumiputera. However, he admitted ultimately that his
\naffirmative action was overdone, resulting in people who were
\nrather laid-back and not willing to make an effort. He admitted
\nthat the policy failed to develop a competitive streak among
\nMalays.<\/p>\n
The market mechanism will eliminate those who base their
\nbusiness on political patronage rather than competitiveness.<\/p>\n
However, it is clear that the durability, in business terms,
\nof traditional food stalls such as Padang restaurants and Warung
\nTegal is not due to affirmative action.<\/p>\n
These criticisms and the failure of affirmative action have
\nbeen ignored by Jusuf Kalla, who states that his own family
\nbusiness is growing because of this action, disregarding the
\nunsuccessful stories that constitute the mainstream.<\/p>\n
He also ignores the possibility that he was able to make it as
\na businessman not due to the policies, but because he is the
\ndistributor of Toyota in eastern Indonesia, which was owned by
\nTjia Kian Liong (William Soeryadjaya).<\/p>\n
In the wake of major industrial development in China such as
\nin garments, textiles, footwear and other commodities, which has
\nsidelined its Indonesian counterparts, it is important to muster
\nall resources for the sake of Motherland Indonesia against global
\ncompetition.<\/p>\n
Indonesian textile association chairman Benny Soetrisno said
\nthis is a battle between states, not between companies.<\/p>\n
There is no point in creating fear among Chinese-Indonesians
\nin their own homeland: History has sensitized them to detect
\ndanger from miles away, and survive.<\/p>\n
Now is the perfect time for Jusuf Kalla to make known his
\nability to build solid economic cooperation between Indonesian
\nentrepreneurs, disregarding race, religion or culture.<\/p>\n
Above all, Chinese-Indonesians are also children of the
\nnation. It is far better to maximize their potential than
\nalienate them.<\/p>\n
The writer is a lawyer. He can be reached at
\nivanwibowo@hotmail.com<\/p>",
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