Indonesia must win back its Chinese community
Two months have past since riots shook Jakarta and other cities. Jusuf Wanandi, chairman of the supervisory board of the Centre for Strategic and International Studies, looks at what must be done to rebuild the shattered confidence of Chinese- Indonesians.
JAKARTA (JP): This is a watershed period for Chinese- Indonesians. The riots, looting, burning and rapes on May 13 - May 14 have left them bewildered, rudderless and desperate. The brutality makes many wonder whether they still have a place in Indonesian society.
That is because these events, preceded by smaller episodes since early last year, have connotations similar to "ethnic cleansing" campaigns in other parts of the world. They seem to have been planned, organized and executed with a clear objective: to drive the Chinese-Indonesian out of the country.
If the planners of the riots wanted to scare the Chinese- Indonesians, they have succeeded. But they have also succeeded in hurting Indonesia itself. Most Chinese-Indonesians are now questioning their role in their country's future economic development.
Their business leaders had invested most of their wealth in Indonesia. Now, most are not expanding investments because the local economy is stagnating. Some conglomerates had made investments in other countries, including China, but they were small. As the picture worsens, those who pulled their money out are looking elsewhere for opportunities.
Chinese-Indonesian professionals, who have borne the brunt of the brutality, are job hunting in other parts of East Asia, Australia and New Zealand. But the majority of Chinese- Indonesians -- poor laborers, farmers, fishermen and small shop owners -- have no option but to try to survive in the country of their birth.
Because of history and government policies, Chinese- Indonesians are dominant among the big conglomerates, midsize companies and the family-run shops that are essential to the goods distribution chain. Despite assistance to Indonesia from the Group of Eight, the International Monetary Fund and the World Bank, the lack of confidence of the Chinese-Indonesian community has contributed to a deep recession. Southeast Asian Chinese, and those of Hong Kong and Taiwan, will also be reluctant to invest in Indonesia as long as Chinese-Indonesians stay away.
Chinese-Indonesians will only plow money into the economy after they have regained trust in Indonesia's future. For this, two things are required. Most vital is a full accounting of the May riots. This means bringing to justice the real culprits, through the courts and military tribunals.
President B.J Habibie's effort to recognize the traumatic May events and apologize on behalf of the government is a good start. And the creation of an independent national committee to investigate the rapes is welcomed. The investigation must go to the root of the problem, even if its trail leads to powerful people.
The second requirement is a trustworthy government. Chinese- Indonesians fail to see this in the Habibie administration. They consider the President weak, divisive and without legitimacy. They feel some members of his Cabinet are pursuing policies to limit the role of the Chinese-Indonesians in the economy. That is why it is important to hold a general election as soon as possible.
In the medium term, there must be an open dialog on the future status, rights and obligations of Chinese-Indonesians in the country's national development. This should produce acceptable policies for both the minority Chinese-Indonesians and the pribumi, the majority native Indonesians. A healthy debate should explore the viability of affirmative-action policies such as in Malaysia, as well as the need for new partnerships in economic development. For a new policy to work, all sides must honor transparent and consistent rules. There must also be a fixed time frame to achieve results. Only then will the outlook for all of Indonesia's citizens brighten.
Reprinted from Business Week by special permission. Copyright, McGraw-Hill Companies Inc. 1998. All rights reserved.