Actually, the Indonesians were hurting themselves more than the Chinese. Because of recent history and the peculiar economic situation of Indonesia, the island republic is dependent upon overseas Chinese for economic well-being and development. The Chinese constitute the one stable, progressive factor in what is otherwise a record of economic failure and a slow slide toward disaster.
For the last few years, Indonesia has been afflicted by civil war, the erosion of island separatism, and inefficient, corrupt government. Exports have decreased sharply. An unfavorable trade balance led to rampant inflation. Foreign exchange reserves plunged from US$800 million to $10 million.
The drought of 1961 was severe. Rice paddies of Java were dry for nine months. Grain imports of 800,000 tons were required to make up the shortage. The 1960 production of sugar was 560,000 tons, sufficient for only a third of Indonesia's consumption. Rubber output dropped by 50 per cent. Such usually staunch exports as tea, tobacco, and pepper declined by 20 per cent.
The agricultural ministry has undertaken desperate measures to save the situation. Ambitious quotas were set for rice and other export crops. For both 1961 and 1962, production fell far behind requirements. There was little left for sale overseas.
So, too, with industry, which the Indonesians confiscated from the Dutch only to find that production dropped through the floor and profits went up in smoke. The same thing has happened in cases where the Indonesians seized business from overseas Chinese.
Indonesia was under Dutch rule for more than 300 years. Anti-colonial sentiment is natural. Africa has feelings in generous measure, yet the newly independent African countries are receiving large amounts of help from such former colonial powers as France and Great Britain. Indonesian neighbors like Malaya and the Philippines have been similarly helped by those who once wielded authority.
Instead of exercising the political control they had won and at the same time using Dutch know-how and understanding of the local situation, the Indonesians expelled the former masters and confiscated their properties. This attitude has been reflected in a chauvinism that also hurt the Chinese and crippled Indonesia's only remaining source of industrial and business acumen.
In March, 1958, when the Indonesian civil war broke out, the anti-Chinese movement was intensified. The government forbade Chinese youth activities and suppressed Chinese-language newspapers. Many anti-Communist Chinese were arrested on charges of "assisting the rebels" and "carrying out infiltration." Overseas Chinese schools were shut down. The Indonesian government took over management of many properties.
Press Blackout
Since January, 1960, more than 80,000 retail stores have been confiscated from Chinese. Five hundred thousand Chinese in western Java were forced to abandon businesses or trades and wander from place to place. Their properties were turned over to Indonesians, who became rich overnight.
The riots of last spring were a continuation of what had happened before. Trouble began March 27 and afflicted many towns in Java. A press blackout prevented newsmen from learning details of the violence in Tjirebon. Until the large-scale riots in Bandung, the only news came from tourists. Not until then did the Indonesian government try to stop the outbursts.
In Bandung, 90 per cent of Chinese shops, scores of private homes, 61 cars, and 39 motorcycles were burned or damaged. The 100,000 Chinese closed their stores and remained indoors.
3,000 Lose Homes
On May 19, rioting occurred in Sukabumi, Tjibadak, and Tjiandjur. Thousands of Indonesians rioted for eight hours at Tjiandjur. Cars were stopped and set afire along the main route between Jakarta and Bandung. Some 3,000 Indonesian nationals of Chinese descent were made homeless in the hill city of Sukabumi.
The Indonesian government has persecuted overseas Chinese economically since 1954. Whenever an economic crisis occurs and that is much of the time-frustrations are taken out on the Chinese. They are made the scapegoats for Indonesian failures in industry, business, and even agriculture.
Chinese are unreasonably restricted in business and trade. Such measures are even extended to Indonesians of Chinese descent. As retail outlets are given to the Indonesians, the supply of goods declines. Chinese retailers customarily give credit. The Indonesians do not. Procurement know-how of the Chinese is not matched by the Indonesians, who also are distrusted by suppliers.
In some townships, Chinese have been permitted to return to restaurants and shops in order to save the local economy. Stores are placed under the names of family members of Indonesian nationality.
Farm Economy
Indonesia is the world's largest archipelago, comprising about 3,000 islands with an area of 735,000 square miles and a population of 97,085,348, the world's fifth largest. Rich in natural resources, the country has abundant tin, oil, coal, bauxite, copper, gold, and silver.
The economy is chiefly agricultural—75 per cent. Mining and handicrafts are important.
The overseas Chinese constitute a middle class of Indonesian society. Most are engaged in commerce, a few in manufacturing, forestry, fisheries, and mining. Businessmen include retailers, brokers, wholesalers, and owners of middle and small-sized factories.
A report of the Dutch period showed 91.5 per cent of Chinese were engaged in commerce. Businessmen totaled 170,000 and raw material suppliers 144,000. The latter were working in agriculture, fisheries, forestry, salt processing, and mining.
Number of manufacturers was 94,000. Industries included canneries, metals, textiles and garments, timber and bamboo, and leather. Some Chinese were in the professions and others in public administration.
In 1959, the Indonesian government required foreign businessmen to register. A July survey showed 114,875 enterprises, 109,466 owned by Chinese. Some estimates say the total count should be 20 per cent higher.
The figure was broken down into 692 wholesalers and large companies, 24,991 middle-sized stores, and 83,783 small shops.
Business Restrictions
Chinese have been restricted in their west Java business interests. Thirteen kinds of plants must be turned over to the government or shared with Indonesians. The industries are biscuits (cookies), soft drinks, sweets, coconut oil, garments, batik, salt, zinc plate, limestone, saw mills, kerosene stoves, and tires.
Chinese are distributed throughout Indonesia. The estimate of their number is 3 million, including 600,000 who were born in Indonesia and have Indonesian nationality.
Most live in such big cities as Jakarta, Surabaya, Semarang, Medan, Bandung, Ralembang, Macassar, and Soerakarta.
They have carried on in the Chinese tradition of peace and respect for law. They tend to be conservative. Though they have tried to do as the Romans do, they retain Chinese culture, customs, and language. They speak both Chinese and Indonesian except for a few newcomers who do not speak Indonesian and some native-born who do not speak Chinese.
Before World War II, most Chinese young men sent to China for wives. Now most find their mates in Indonesia. Few marry Indonesians.
Overseas Chinese look upon their children's education as extremely important and usually establish their own schools. Indonesia had 1,669 such schools in 1957. Enrollment was 450,000.
Early Arrivals
Since 1955, the Indonesian government has imposed tight restrictions on Chinese-language education. Schools are no longer under Chinese control. Many parents have sent sons and daughters to Taiwan for education.
Chinese first went to Indonesia thousands of years ago. Archeologists have found Han dynasty (206 B.C-220. A.D.) China ware in west Java, southern Sumatra, and eastern Borneo.
Fa Hsien, a Chinese scholar, went to India in 415 A.D. He wrote that he also had stayed in west Java for five months and had seen Chinese people everywhere. The influx of Chinese into Indonesia continued steadily through the centuries. At first numbers were not large.
When the Dutch occupied Java, the island was thinly populated and the people only semi-civilized. The Dutch turned to the hardworking, more cultured Chinese for help in developing the land.
Dutch ships patrolled the seas. When they saw Chinese sailing craft, they captured the seamen and took them to Indonesia. They also paid high prices for the slave laborers provided by Chinese pirates. Additionally, workers were recruited along the coast of south China. Laborers were promised 60 to 100 yuan (currency of the Ching dynasty), but most received only 20. The rest went to brokers. Contracts were signed with the workers but not kept. This slave labor trade is one of the cruelest pages in Chinese history.
Nevertheless, the Chinese who found themselves in Indonesia did not despair. They taught Indonesians the cultivation of various crops, including tea and tobacco. They taught the techniques of wine making and textile weaving. Tea and tobacco are now leading exports.
Deli is famous for tobacco. It was developed by overseas Chinese. Muntok produces 86 per cent of the world's pepper. Most of the plantations are Chinese-operated.
The Chinese have helped build many of the largest cities, including Jakarta and Medan. They developed Bagan-Siapi-api into one of the world's largest fishing grounds, the textile industry of Tjitjalangka, and the batik-making of Pekalangan.
Toleration of Reds
After such a record, why should the Chinese be subjected to persecution in what has come to be their second homeland?
Hsu Shao-chang, now ambassador of the Republic of China to Brazil and formerly political vice foreign minister, attributes the rioting to (1) Indonesia's narrow nationalism, (2) misdirection of the anti-Communism of the Indonesian people toward all of the Chinese people, and (3) the economic difficulties and internal difficulties of Indonesia.
Since independence, Indonesia has tolerated the Communists. In 1949, Indonesian Premier Sjarifudin was a Communist, although he was not then identified as such. The Communist Madium rebellion of 1948 led to great bloodshed in many cities of central Java.
Pacific Time Bomb
The Communist infiltration of Indonesia has given rise to instability and poverty. Rank and file Indonesians hate the Communists. It is not surprising that the anti-Chinese riots of last spring entered a more violent phase shortly after Liu Shao-chi, "chairman of Chinese People's Republic", visited Indonesia. The Indonesians turned their anger against all Chinese, failing to understand that most Indonesian intellectuals, teachers, and students oppose Communism. Some students mistakenly participated in the riots, believing they were expressing anti-Communism.
An American writer who toured Indonesia wrote that country is a time bomb in the south Pacific. Communist infiltration is to be found everywhere.
However, the time bomb need not explode, provided the Chinese have opportunity to fight Communism by building the Indonesian economy for the benefit of all the people of the island. Indonesia is rich and should be prosperous. Persecution of the Chinese is killing the goose that already has laid many golden egg for Indonesia and that is ready to stay on the nest. There is nothing wrong with the Indonesian economy that anti-Communism and Chinese entrepreneurial skills cannot put right.
__________________________________________________________
Factual materials of this article are based partly on the Yearbook of the Overseas Chinese Economy, 1962, and interviews with previous residents of Indonesia.