Prejudice against ethnic Chinese tycoons remains<\/p>\n
By Tjipta Lesmana<\/p>\n
JAKARTA (JP): The controversy over the plan to sell 50.1
\npercent of Indocement's Indofood to Singapore-based QAF Ltd has
\nsubsided following a recent government statement.<\/p>\n
According to an investigation conducted by government
\nministers, the company's move does not amount to capital flight.
\nThe plan, the government says, is in line with its policy of
\nanticipating the ASEAN Free Trade Area and Asia Pacific Economic
\nCooperation free trade eras.<\/p>\n
Prior to this, the Salim group company's plan had been under
\nfire. According to Minister\/State Secretary Moerdiono the
\ncontroversy even drew the attention of President Soeharto, who
\nordered the ministerial investigation.<\/p>\n
The plan, which is said to involve the restructuring of PT
\nIndocement Tunggal Prakarsa, is obviously linked to Indonesia's
\nmost prominent tycoon, Sudono Salim. The press even questioned
\nhis nationalism. His accusers were convinced that Salim's plan
\nwould severely damage the nation's economy.<\/p>\n
Salim and other tycoons have already gone through similar
\nexperiences. Salim was criticized when he invested in China, as
\nwas Eka Tjipta when he set up a paper mill in China.<\/p>\n
"We often operate under suspicion," said Sofyan Wanandi, a
\nbusinessman who often assumes the role of spokesman for the
\nJimbaran Group, named after the place where some of the country's
\nmost powerful tycoons promised to cooperate to help smaller
\nbusinesses.<\/p>\n
Sofyan says the media is less than friendly to conglomerate
\nowners, while the tycoons themselves feel they have always helped
\nwith government development programs in a substantial way. The
\nlatest example being their assistance in creating gigantic rice
\nfields to alleviate poverty.<\/p>\n
I once encountered a tycoon who looked listless. He showed me
\na "sacred letter" coaxing big businessmen to purchase shares in
\nPT Dua Satu Tiga Puluh, at the time a newly established company
\nlinked to the national airplane industry.<\/p>\n
He also told me of his experience when he was invited to a
\ndinner attended by well-known businessmen. They were all "held
\nup" to buy coupons as tokens of their participation in a
\ngovernment program. By the end of the evening, less than two
\nhours later, tens of billions of rupiah had been collected. "I
\nonly contributed a little," he said honestly.<\/p>\n
An observer likens Indonesian businessmen to milk cows. They
\nare given various facilities to expand their businesses and their
\ncompanies increase in size. Their knowledge is then solicited to
\nassist various government programs.<\/p>\n
"Its only right to give assistance, but the system sometimes
\ncauses headaches, too, especially when business is slow like
\nnow," said one businessman.<\/p>\n
People believe they have good reason to suspect business
\ntycoons, many of whom are Chinese-Indonesians. They cite examples
\nof Chinese traders being used by the Dutch colonial government as
\nbuffers between them and the indigenous population.<\/p>\n
Another claim from colonial times was that traders were
\nwilling to become guards in return for profit or rank. These so-
\ncalled "sins" of centuries past have been told to subsequent
\ngenerations and the burden of these allegations is still borne by
\npeople today.<\/p>\n
The government must take some responsibility for this. The New
\nOrder, consciously or not, has created a fertile field for the
\ngrowth of a discriminative atmosphere in society. It seems that
\ncertain regulations were made with the intention of identifying
\nIndonesians of Chinese origin.<\/p>\n
Identity cards have special codes for this societal group.
\nAdmission to state universities is restricted. The same applies
\nto the Armed Forces' and government agencies' recruitment.
\nConsequently, 90 percent of Chinese Indonesians find refuge in
\nthe only venue left open to them, namely business.<\/p>\n
It is ironical then that when they go into business, the
\nethnic Chinese are accused of being economic animals who think
\nonly of money without any social concerns. Another accusation is
\nthat ethnic Chinese dominate more than 70 percent of the
\nIndonesian economy.<\/p>\n
For some reason, people strongly believe that at the highest
\nlevel ethnic Chinese are linked inextricably with people in
\npower. It is asserted that they obtain bank credits more easily
\nbecause of a recommendation or "sacred letter" from a senior
\ngovernment official. People go as far to say that these
\nbusinesspeople enjoy all kinds of facilities, including
\nmonopolies, and seem to be "untouched" by the law.<\/p>\n
They cite examples of a tycoon in prison who easily escaped or
\nan ethnic Chinese businessmen accused of tax fraud, causing the
\ngovernment billions in losses, who was acquitted. In the wake of
\nevents like these indigenous businessmen who fail to obtain
\nfacilities are angered and some make unguarded statements
\nbordering on racism. It seems that the setting up of
\nbusinesspeople's organizations, like HIPPI and HIPLI, is somehow
\nrelated to this mood.<\/p>\n
This hostility toward tycoons extends to the rest of the
\nethnic Chinese community, which in turn leads to an explosive
\nsocial situation. People simply believe that the ethnic Chinese
\nare prospering and enjoying an opulent lifestyles while other
\nIndonesians are missing out. Each time social unrest explodes,
\nlower and middle class ethnic Chinese are the first victims. The
\nrecent riots in East Java, Central Java and West Java are an
\nexample.<\/p>\n
Social scientists believe the government allows the growth of
\nprejudice among indigenous people against ethnic Chinese because
\nof certain political interests. If the government is in an
\nunstable situation, the ethnic Chinese can easily be turned into
\nscapegoats.<\/p>\n
The scapegoat theory is apparently very fitting when analyzing
\nthe series of riots over the last 13 months. It also explains why
\nsociety tends to dislike tycoons. It is possible that the real
\ntarget of people's hostility is the power holders. But since
\npeople do not have the courage to vent their frustrations against
\nthem directly, they turn on the tycoons.<\/p>\n
The writer is a lecturer in the School of Political and Social
\nSciences at the University of Indonesia.<\/p>",
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