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.