Empowering the indigenous population

Empowering the indigenous population

By Junus Jahja

JAKARTA (JP): The economic gulf between the indigenous
population and citizens of Chinese descent has become a chronic
problem, necessitating a new approach for its permanent solution.

In this context, an article by Indonesia's first vice
president, Mohammad Hatta, titled Nationals of Chinese Descent
in the Jan. 26, 1957, edition of the Star Weekly may be useful
for further thought.

He wrote: "When the Indonesians regained sovereignty, part of
the Chinese population became Indonesian citizens and part chose
to be Chinese nationals. However, from the point of view of the
community, it is hardly distinguishable who is on our side and
who is not. What is being noticed is that the economy of the
Chinese is stronger than ever.

"This problem could be overcome by a strong economic policy
aiming at uplifting the people's weak economy to the level of the
already advanced economic group. This problem could not be solved
based on capitalistic principles."

The same idea was adhered to by Thee Kian Wie, a well-known
economist and research fellow of the Indonesian Institute of
Sciences (LIPI).

In his article on Nonindigenous Indonesians and Economic
Nationalism in April 1997, Thee stressed that economic gaps or
imbalances were the main obstacles affecting the good
relationship between indigenous Indonesians and ethnic Chinese in
the country. Other factors such as culture and religion also play
a role but are not that important.

According to Thee, in countries just freed from their colonial
masters, relations between the native population and citizens of
foreign descent will improve when national productive assets are
in the hands of and controlled by the indigenous people. This was
not the case in independent Indonesia. The 1949 Round Table
Conference in The Hague guaranteed the so-called historic rights
of Dutch businesses in Indonesia. In the economic field,
foreigners were still dominant even after 1958, when the Dutch
businesses were nationalized.

The feeling of not being 100-percent free in the economic
domain still prevailed. Economic nationalism among the Indonesian
people at large was still lacking due to the absence of a strong
class of indigenous Indonesian entrepreneurs. Positions in the
economic sector were then replaced by ethnic Chinese. The economy
and the retail sector, especially in urban areas, were in the
hands of the latter group, still considered as "aliens".

In the early 1950s, the new Indonesian government introduced
the so-called "Benteng Program" to foster the creation of a
strong indigenous middle class of businessmen.

However, the program only produced rent-seekers selling the
obtained trade facilities to Chinese businessmen. The program was
revoked in 1957.

The nationalization of big Dutch companies in 1958 opened even
greater opportunities for ethnic Chinese to enter the economic
domain left by the Dutch. And the economic policy of the New
Order government under Soeharto gave the above population group
much greater impetus to enter lucrative sectors.

They developed rapidly and quite a number of them have become
very prosperous indeed. They control a large number of productive
assets in this country.

This achievement is due to various factors and the emergence
of big tycoons among them is, however, not only due to their
positive qualities, but also due to "monkey business"
euphemistically lumped as "smart political connections" --
corruption, collusion and nepotism. Indeed, there are also a
number of Indonesian businesspeople clambering up to the highest
level, but the number is relatively small.

Retired lieutenant general Sayidiman Suryohadiprodjo stated in
his 1971 book Steps in Our Struggle that a strong "national body"
was required to realize "economic nationalism". The existing
weakness was that among the indigenous people there were hardly
any competent entrepreneurs. Consequently, in view of nation
building, the weakness should be overcome in two ways.

First, a strong group of national entrepreneurs should be
created at all levels. Second, as many ethnic Chinese living here
as possible should become citizens and have the same national
consciousness as indigenous Indonesians. Like what Sayidiman
said, the indigenous as well as nonindigenous should work
together to make the former grow stronger.

But the solution to the "Chinese problem" is indeed not very
easy. Besides a policy to abolish poverty in general, other
economic measures should be considered, such as the introduction
of so-called "affirmative action policies" to promote the growth
of a strong indigenous entrepreneurship.

Affirmative action is a special effort to strengthen the
economically weak without impairing the economically advanced
groups.

Such polices are applied in the United States to promote the
economic growth of Afro-Americans and in Malaysia for the
bumpiputera, or indigenous Malays.

In this respect, Indonesia's big, medium and small business
groups together with prominent figures and intellectuals should
form a "consultative body" to diminish economic imbalances in the
society. The body should consist of representatives from the
government as well as indigenous and nonindigenous groups.

It would be highly effective if the proposed body, with a
strong commitment to making the indigenous groups economically
dominant and strong, was directly responsible to the president.
Thus, the economic nationalism should be attainable and the
majority will, at last, feel they are "masters in their own
home".

The writer is an activist on Chinese Indonesians assimilation
movement.