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Jusuf
Kalla and the Chinese, a Critique of Past Views
Ivan Wibowo
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From the names
on the two presidential tickets in the Sept. 20 election
runoff -- Susilo Bambang Yudhoyono-Jusuf Kalla and Megawati
Soekarnoputri-Hasyim Muzadi -- South Sulawesi businessman
Kalla's is the most controversial for Chinese-Indonesians.
Rumors have been circulating among those of Chinese descent
of Kalla's anti-Chinese sentiment, despite his repeated
denials. On his official website, www.jusufkalla.com, he
says, "Favoritism for pribumi (indigenous) businessmen
should be reaffirmed and maintained."
Kalla also stated his full support for a variety of old
government policies that afforded special treatment for
so-termed indigenous businesspeople and limited the expansion
of the Chinese community.
Economic policies such as System Benteng (fortress system),
the Asaat Movement, Government Regulation No. 10/1959, credit
for small and medium-sized enterprises and controls over
the distribution of staple commodities were among his economic
beliefs.
The younger business generation of Chinese descent is not
familiar with these terms, but for their older counterparts
these policies provide bitter memories.
System Benteng was introduced in 1950 by welfare minister
Juanda to provide security for pribumi importers by giving
them special permits and other supportive treatment. In
practice, it was those of Chinese descent, ultimately, who
ran businesses, as the pribumi preferred to outsource the
work instead of doing the importing themselves. Haji Kalla
and the Bakrie family were two pribumi entrepreneurs that
managed to develop their business because of the system.
The policy was stopped in 1954.
The Assaat Movement was introduced by Indonesian official
Assaat in 1956 and called for discriminatory acts against
all in the Chinese-Indonesian business community.
PP No.10/1959 stipulated that nobody of Chinese descent
was allowed to have a business beyond regental level. The
armed forces vehemently supported implementation of the
regulation, resulting in 130,000 Chinese-Indonesians leaving
this country.
The KIK/KMPK, which began in 1974, was credit schemes only
for pribumi small and medium-sized enterprises. The government
stopped the scheme in 1988.
Distribution of staple commodities become a matter of hot
debate after the 1998 anti-Chinese riots in the capital
that made the Chinese take refuge. Kalla said such a policy
would provide an opportunity for the pribumi to handle distribution.
For Kalla, this series of policies amounted to affirmative
action, "to limit the expansion and existence of nonindigenous
Indonesians, and 75 percent of the distribution of staple
commodities should be in the hands of indigenous people".
He disregarded various critics who underlined the failure
of these discriminatory rulings, such as late, prominent
economist Sumitro Djojohadikusumo, who said, "Of 10
indigenous businessmen only three managed to grow because
of these affirmative policies: The rest remained as benalu
(leeches)."
Former Malaysian prime minister Mahathir Muhammad introduced
similar affirmative action, the New Economic Policy, in
1971, to support bumiputera. However, he admitted ultimately
that his affirmative action was overdone, resulting in people
who were rather laid-back and not willing to make an effort.
He admitted that the policy failed to develop a competitive
streak among Malays.
The market mechanism will eliminate those who base their
business on political patronage rather than competitiveness.
However, it is clear that the durability, in business terms,
of traditional food stalls such as Padang restaurants and
Warung Tegal is not due to affirmative action.
These criticisms and the failure of affirmative action have
been ignored by Jusuf Kalla, who states that his own family
business is growing because of this action, disregarding
the unsuccessful stories that constitute the mainstream.
He also ignores the possibility that he was able to make
it as a businessman not due to the policies, but because
he is the distributor of Toyota in eastern Indonesia, which
was owned by Tjia Kian Liong (William Soeryadjaya).
In the wake of major industrial development in China such
as in garments, textiles, footwear and other commodities,
which has sidelined its Indonesian counterparts, it is important
to muster all resources for the sake of Motherland Indonesia
against global competition.
Indonesian textile association chairman Benny Soetrisno
said this is a battle between states, not between companies.
There is no point in creating fear among Chinese-Indonesians
in their own homeland: History has sensitized them to detect
danger from miles away, and survive.
Now is the perfect time for Jusuf Kalla to make known his
ability to build solid economic cooperation between Indonesian
entrepreneurs, disregarding race, religion or culture.
Above all, Chinese-Indonesians are also children of the
nation. It is far better to maximize their potential than
alienate them. M (JP/IW/IM)
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