Tue, 14 May 1996

Business interests may eclipse nationalism: Edi

JAKARTA (JP): Minister of Defense and Security Edi Sudradjat warns the nation against the possibility that nationalism may become eclipsed by business interests.

"With the growing importance of international relations, people might think that what's important now is not national unity and integrity, but international solidarity for the sake of economic success," he said in a seminar titled "The Nation State in the Globalization Era" here yesterday.

"There are two forces pulling in opposite directions, one towards the global business network, the other towards the national interest," he said.

He stressed the need to uphold a sense of nationalism, especially among entrepreneurs active in crossborder ventures. He pointed out that many of the nation's successful businesspeople were of Chinese descent.

"These businesspeople are part of the nation's potential only if their success is oriented towards the national economic interest," he remarked.

Edi then went on to explain that some economists predict that China, not Japan, will dominate the region in the future.

The domination will not only stem from China's own domestic economic power but also from the network of Chinese businesses abroad.

The seminar was held at the National Resilience Institute, the military think-tank. It was co-organized with the Bakom PKB, a government-sponsored agency in charge of promoting social integration between the country's various ethnic groups.

The event, held to commemorate the 88th anniversary of National Awakening Day next week, was attended by chief of the Indonesian Democratic Party Megawati Soekarnoputri, and business tycoon Sudono Salim.

The minister went on to say that, in the future, the private sector will be the engine of growth in Indonesia.

In fact, of the Rp 680 trillion needed for the ongoing Sixth National Development Plan period in investment, only one-fourth will come from government funds while the rest is expected to come from the private sector.

Despite the fact that the private sector is growing more powerful and influential, it will still need the help of the government, Edi warned.

"The private sector can't just walk into the global business network without the legitimacy that only a government can grant," he added.

Edi said that a country is not merely a base for launching economic activities but represents the businesses' identity, particularly with regard to legal matters.

He then went on to recount the origins of the Indonesian nation, not based on any race, religion or group, but rather on a common purpose and vision.

In various important points of Indonesian history Edi noted the presence of the ethnic Chinese group.

It was this strong sense of nationalism and common belief, Edi argued, which must be upheld today.

"Nations who don't have a strong sense of national integrity will easily disintegrate," he warned and pointed to the break-up of several east European states as an example.

The minister then pointed out the potential threats which lay waiting in the nation's path.

He described the two potential conflicts as ethnicity and religion, as well as wealth disparity.

The danger, according to Edi, is that the two potential conflicts find an overlap which highlights a particular ethnic group with the same level of wealth. (mds)

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