For Success First Appreciate The Past

To do business in Indonesia you first have to understand certain elements of history. Struggles, Occupation, Independence, Communist tendencies and Authoritarian regimes, which have led to this point today.

Indonesia's technically was colonized by the Dutch for a 126 years. Indonesia’s view is this period ended in 1942 as the Japanese rolled in taking control for a further 3 years. It's important to point out the vastness of the Indonesian archipelago, overlaid on Europe it would stretch from London to Tehran. The Dutch cherry picked parts of Indonesia which were important for trade and logistics, they never really took total control. In fact the Indonesian were grouped into Kingdoms with each leader taking responsibility for their individual part corralling their like-minded people into tribes, led by a sultan or King.

I say the Dutch colonial period terminated in 1942, which is not strictly true. After the war ended and the Japanese surrendered the Dutch attempted a return.  By now the Indonesian had mustered a kind of guerrilla warfare experience whilst making life difficult for the Japanese.  Needless to say colonial incursion were no longer tolerated.

The period that followed was brutal the Dutch Army were in many instances likened to the Nazi's with their behaviour and atrocities that followed prior to full independence. No story can be complete until you write about Christmas of 1946. A Battalion under the command of Captain Raymond Westerling moved on the South Celebes, now known as Sulawesi over a two-month period they wiped villages off the map killing 4,000 people.  This was a war crime which has never been atoned for.  The irony in this situation was that whilst this barbaric act took place.  Nazis were being tried at The Hague for similar atrocities. President Sokarno declared Independence upon the Japanese surrender it took a further 3 years to rid the archipelago of the murderous atrocities to finally win freedom.

The Asia struggles were far from over as the Russian army were sweeping down through Manchuria and into the Korean Peninsula. China was in a state of civil war ending in 1949 with the victor being the Communist leader Mao Zedong over the Nationalist army of Chiang Kai-shek, whose Kuomintang retreated from the mainland onto Taiwan. Taiwan was given tolerance as Mao was unwilling to pursue further allowing Chiang Kai-shek to save face in a way the Chinese only understand.

Of course Vietnam became a focus as did South Korea. Much has been documented on this point. In the 60s Indonesia fell under the control of Suharto a brutal dictator given free rein by his American backers.  Suharto ruled for a further 32 years, that is until the end of the cold war. Some would say he was kept in power for the few years following the fall of the Berlin wall by his very canny wife Siti (Tien) Hartinah m. 1947–1996. Tien Suharto was widely reported as the power behind her husband’s throne, a meddling and unscrupulous woman who gave a new meaning to financial corruption. She was called Ibu Negara, Mother of the Nation, and she never let anyone forget that she, unlike her husband, was descended from royal stock. According to local belief it was she, because of her descent, who possessed the wahyu, or gift of power. Now that she was dead, her husband can no longer lay claim to it.

After her death the Soharto dynasty was collapsing giving way in 1998 to a true democracy in transition, not glossing over this as the fall of Soharto was not a smooth affair.  The country erupted into a short civil war. Students were rioting, gangs were forming on all major arteries, I remember this well as I was in the heart of the city on the 24th floor of a major telecom operators office building putting together a 5-year plan, we abandoned the meeting recognizing the stupidity of the situation as no one could be clear as to the next day let alone look 5 years out.  The brunt of the anger was metered out to the Chinese communities many were killed others fled for their lives. My journey that day was onto London but my trip through the marauding masses was not so easy. My driver Wayan was excellent, and we made it to the airport unscathed. Many Indonesian Chinese were also there, their journey more fraught than mine. Most had travelled in the boot of their car, some wrapped in carpets.  On my arrival in London I was met by the MOD who later visited me in my hotel to strategies a military led evacuation of Brits in Jakarta. Strange times indeed.

Here we are some 20 years later with a leader, imaginative, honest and intent on breaking the elites past strangle hold, this he is doing at incredible speed.

This is just a potted history lesson, over time I may embellish in greater detail but for now the purpose of this blog is to show the future this dynamic democracy has and the opportunities it holds to those that are prepared to step a toe into this country deemed to be the 5th biggest economy.  It would be wrong to say take a risk on this market because that would be a phrase you could use some 20 years ago.  This is now a maturing market full of opportunity. As the saying goes the best time to plant a tree was 20 years ago the 2nd best time is now!