The dirty politics of the boardroom
The dirty politics of the boardroom
Politiking Di Panggung Bisnis (Politicization in the Business
Sector);
By Rhenald Kasali;
Published by Gramedia & TIARA, Jakarta, 1998;
241 pp + xxii;
Rp 17,000
YOGYAKARTA (JP): The meaning of politics has always been
misunderstood as the effort to reach, capture and preserve power.
People will justify any means to gain power, and politics has
descended into a sort of barbarian arena where tricks and
violence prevail.
Social unrest and political riots that occurred in every part
of the country immediately before the 1997 general election,
removed from the squabble of the elites in Jakarta, were the
latest instances.
It turns out that political tricks are not only played out on
their own stage, but also in business. This book reviews cases of
politicization in that sector, where it proves to be as cruel,
Machiavellian and ruthless as that in politics.
Most tellingly, Rhenald Kasali argues that destructive
politicization behavior grows excessive when a country's economy
fails.
According to this management expert at the School of Economics
of the University of Indonesia, the recession has dragged
business into a vertical slide. A clear picture of how this
occurs was shown by the economic failure in the U.S. between
1988-1993. In those years, the U.S. trade balance sank to the
bottom in the aftermath of economic progress in Asia.
Consequently, several CEOs were removed from companies such as
IBM, Apple, Amex, General Motors, Xerox, Procter and Gamble and
Coca-Cola as they were considered unsuccessful in curing their
firms' business ills. Even Lee Iacocca, the man who saved
Chrysler, the pride of U.S. car manufacturers, was among the
victims.
The timing of this book's release, amid Indonesia's acute
economic crisis and the politically high risks involved, is
perfect. It graphs a conspicuously growing politicization in the
country. Cases cited are the Bapindo banking scandal, revocation
of printing licenses for media, capital flight, malfeasance
involving social security funds, diverging bids of state
electricity company PLN, cancellation of mega projects and the
sinking public confidence in banking institutions after the
liquidation of 16 banks last year.
Politicization may flourish following the signing of an
agreement by President Soeharto to conform to stipulations of the
International Monetary Fund. These included reining in businesses
dominated by monopolies and cartels. A consequence of Indonesia's
wish to be part of global capitalism is that it must show respect
for clean and transparent business practices.
Politicization spreads to a great extent because major
entrepreneurs are identical to the rente-capitalists who are
indeed susceptible to political changes. These nepotistic
capitalists do not owe their success to hard work or
achievements. They are able to diversify their business due to
protection, licensing and facilities from a political patron.
This is obviously distorted because it creates an unfair
investment atmosphere. In turn, in Kasali's view, it leaves
Indonesia's internal business institutions so weak that they are
unable to withstand political turmoils.
According to this doctoral candidate from the University of
Illinois, politicization becomes endemic because the fundamental
economy fails while the political situation remains in turmoil.
In the approach to the 1998 General Session, now in progress, the
political and economic elite did indeed seem to be restless.
Succession causes power to be dispersed rather than centered, and
uncertainty emerges because of the fear of losing privileges. The
elite rely on contrived maneuvers to influence decision-making
concerning their existence. Collusion is inevitable.
As Aristotle said, man is a political animal, which explains
why politicization continues to exist on a massive scale in all
sectors of life. Politicization can be performed by anyone,
anywhere, anytime and affect anybody. Today you may be powerful,
but tomorrow you are powerless; today at the head, tomorrow at
the back; today praised, tomorrow abused. Thomas Hobbes' dictum
homo homini lupus manifests itself in that way, and this is the
essence of Kasali's argument.
This work may be a good reference for those who appreciate and
put their trust in hard work, rather than nepotistic collusion,
and who want to get ahead in business without stumbling on this
supposedly nonpolitical stage.
-- J. Sumardianta
The writer is a researcher at the Institute of Study on Human
Interests (ISHI) and teacher at Kolese de Britto High School,
Yogyakarta.