Agribusiness firm's failure shows people's irrationality
Agribusiness firm's failure shows people's irrationality
Muhammad Nafik and Berni K. Moestafa, The Jakarta Post,
Jakarta
The recent collapse of a private agro-business company that
also brought down thousands of private investors has once again
confirmed a recurring dilemma that people's greed during economic
hardship makes them more gullible.
People are seeking external intervention as a way to help them
cope with their depression or to gain huge profits within a short
time by depending on lofty promises or dreams guaranteed by
others, sociologist Imam Prasodjo from the University of
Indonesia said on Monday.
"This proves that our society is fragile and its rational and
empirical traditions are weak," Imam told The Jakarta Post.
He said the collapse of PT Qurnia Subur Alam Raya (QSAR) in
Cisaat in the West Java town of Sukabumi served as a good example
of the irrationality Indonesians display when investing their
money.
At least 6,000 investors sank their money, amounting to a
total of Rp 500 billion (US$55.5 million), into the company after
they were promised relatively big profit shares.
PT QSAR has reportedly collapsed and its president director
Ramli Araby and other top executives have allegedly disappeared
with the investors' money. Their whereabouts remain unknown.
High-flying businesses promising huge profits are often
offered through newspaper advertisements or leaflets distributed
on streets across Jakarta and other major cities.
Another example of irrationality was recently displayed by
Minister of Religious Affairs Said Agil Al Munawar, who ordered a
much-condemned excavation of the Batutulis heritage site in
Bogor, West Java.
The excavation was aimed at finding a state treasure believed
to have been buried at the site.
Similarly, many people were promised millions of rupiah by
several Islamic foundations, such as Yamisa and Amalillah, both
based in Jakarta, provided they filed formal applications.
Amalillah, for example, offered to give each participant Rp 15
million (US$1,600) in return for a Rp 20,000 registration fee
paid to the foundation six months earlier.
Thousands of people, mostly low-income residents in East Java,
believed the promise and applied for the money, but there have
been no reports that the foundation has disbursed the funds.
Sociologist Ignas Kleden said Indonesians tend to fix their
minds on the results rather the process by which to reach them.
"It's about becoming smart without studying, rich without
working," he said.
He cited an advertisement promising readers they could master
English after a two-week course. "Nobody really wonders how this
can be possible, instead they're fixed on the promised results."
However, people take a cue from society where rampant
corruption, collusion and nepotism gives rise to instant stories
of wealth, he added.
"And they see that not everyone who has studied hard is
successful because of corruptive practices," he said.
Aside from fighting corruption, a good way to eliminate the
condition is by revamping the national education system, he said.
"Our current system produces obedient citizens who bow to the
government when what we need are independent citizens," he said,
explaining that people therefore tend to "expect something from
above" instead of doing it on their own.