Limits on Chinese business supported

JAKARTA (JP): Prominent businessman Sofyan Wanandi supported yesterday a controversial notion that legislation be established to preserve the businesses of indigenous Indonesians by barring Chinese traders from entering certain sectors.

Sofyan, who is of Chinese descent, told a seminar on the dichotomy of indigenous and nonindigenous people that well- established businesspeople of Chinese descent should deal only with big businesses and leave smaller enterprises to indigenous Indonesians.

"The priority for smaller businesses should be given to medium and small indigenous businesspeople only," he said, expressing his belief that such an arrangement would help dispel the dichotomy between the two sides.

An alternative to such legislation, however, would be to develop a system of business partnerships, he said.

"Medium and small businesspeople should be included in any big projects," he said, adding that the authorities should take steps that include the notion of such business partnerships in all deals of huge projects.

"The authorities, for instance, can reject a project proposal of a conglomerate if it fails to include smaller businesses as partners," he said.

Former home affairs minister Rudini suggested over the weekend Indonesia needed to own up the problem of precarious relations between indigenous and nonindigenous people, and find solutions to it before it leads to national disintegration.

Rudini suggested the wealth gap is at the root of the problem in ethnic relations, with wealthy Chinese, who are dominant in commerce, on one side, and the relatively poor pribumi (indigenous Indonesians) on the other. He also suggested that a law be enacted to bar Chinese traders from some business sectors.

People of Chinese descent make up 4 percent, or 8 million, of Indonesia's population of 200 million. Some 200 indigenous and Chinese-owned top conglomerates control approximately 60 percent of the Indonesian economy.

Also yesterday, an indigenous Indonesian businessman from Ujungpandang, South Sulawesi, M. Jusuf Kalla shared Sofyan's opinion.

"Nonindigenous businessmen should not be involved in small businesses or small projects anymore. They should leave them to indigenous businessmen," Jusuf said.

Sofyan, owner of the Gemala Group of businesses, said he was not playing around with his statement of commitment.

"Most of us (well-established businesspeople of Chinese descent) disagree with the practices of monopoly here," he said, in reference to some people's long-standing grievances that people of Chinese descent monopolize the Indonesian economy.

However, he said that such a commitment to stay away from small and medium-sized business activity would require a government guarantee that the laws would be fairly implemented.

"The laws must be seriously upheld. Otherwise, people will create their own laws whenever they are dissatisfied with the system," he said.

Military observer Maj. Gen. (ret) Z.A. Maulani said a harmonious relationship between indigenous and nonindigenous Indonesians would only be possible under a clean government.

"The acute unhealthy and unfair collusion between bureaucrats and businessmen of Chinese descent must be eradicated," he said in a separate session.

Sofyan said he was concerned with the fate of the minority of Indonesians who are of Chinese descent because they have always been the target of most mass riots in the country.

"In the end, it is Indonesians of Chinese descent who became the victims," he said, citing the violence that the community suffered during a spate of riots over the past year.

Sofyan said he was serious with his remarks.

"I am a fourth generation Chinese, whose family emigrated from China five centuries ago," he said. "I cannot even speak Chinese, neither can my father."

Former governor of the National Resilience Institute Sayidiman Suryohadiprojo suggested a greater effort is needed on the part of nonindigenous Indonesians to live side-by-side with indigenous Indonesians.

"They should not form an exclusive community, but mingle with others," he said.

Jusuf, however, said that indigenous Indonesians should not feel any jealousy toward nonindigenous businesspeople's success.

"Indigenous Indonesians should...(instead) improve their capability...business skill and knowledge," he said. (imn)