Limits on Chinese business supported

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)