Historical Review On Development Of Indonesian-chinese Enterprises In Indonesia (1954-1997)

Because of geographical location adjacent to the southeast Asia region since ancient times, it has become one of the first choice of Chinese migration to this area where Indonesia gathers the biggest volume of overseas Chinese. In colonial period,due to the exploitation, limitation, suppression and exclusion of the colonial government, the Indonesian Chinese enterprise developed in a quite tough way.Chinese enterprises mainly rose as agents or brokers of foreign companies to gather capital, then started to manage business of handicraft industry and small factories. By the time of the beginning of the 20 th century, Chinese banks and chambers of commerce came to the stage which marks the formation of business capital in Indonesian-Chinese companies. After independence acquired by Indonesia, the independent position of foreign capital gradually gets weakened while some great changes take place in developing environment of domestic national capital and Chinese capital. Indonesia's industrialization in particular promote the transformation of Chinese capital from commercial capital form to industry capital. At the same time,capital scale and business scope have been expanded. In Sukanto's ruling period,influenced by ideological trend of democratic socialism and domestic political struggle, the development of Indonesian Chinese enterprises falls into tough times and suffers severe oppression and isolation.Among the period from Suharto's succession to the strike of Asian financial crisis in 1997, Indonesia's government has works to proceed economic construction in the context of increasingly stable domestic political environment.All these lay a good foundation for the development of the Indonesian-Chinese enterprises. Especially in the middle of 1970 s, new powers of Chinese enterprise groups have begun to emerge, and the rapid expansion of its capital and economic strength comes in the 1980 s. Since the mid-80 s, exceptionally rapid development, the development momentum towards diversification and internationalization remains high until the Asian financial crisis ended it.In addition to the introduction, this article is divided into four chapters. The first chapter summarizes the development of the Indonesian-Chinese enterprise in three stages.Before independence, Indonesian Chinese enterprises has been initially formed. After independence, in the reign of Sukarno, his country's ruling period, with the Indonesian government, Indonesian Chinese enterprise develops at a low speed because of restrictions, exclusion and suppression by the Indonesian government.When Suharto led the whole country, Indonesian Chinese enterprises went into the golden age of rapid development. The second chapter analyzes the internal and external factors affecting the development of the Indonesian-Chinese enterprise. For the external perspective, the development of Indonesian Chinese enterprise, is not only influenced by the Indonesian government policy on Chinese enterprises, but also relate closely to the deeper economic internationalization and closer global economic ties. In terms of internal factors, the transition of company holders' ideas and collectivization development promote the development of the Indonesian Chinese enterprise together. The third chapter analyses the performance and characteristics of the Indonesian Chinese enterprise. Before independence, Indonesian Chinese enterprises had a difficult start on the margins of society with weak foundation and comprehensive lagging behind in Sukarno's period and faltered in political hostility.After Suahrto succeed, loose political environment drives Indonesian Chinese enterprises to grow in a diversified, collectivized and internationalized road. The fourth chapter elaborates the historical influence and development prospect of Indonesian Chinese enterprise. First of all, the development of Indonesian Chinese enterprises facilitates the progress of Indonesian national economy and so did to the modernization and internationalization of Indonesian economy. Meanwhile, the development of Indonesian Chinese companies contributes to the economic integration in ASEAN. Besides, the last chapter also contends the defects of the Indonesian Chinese enterprise, and leave prospects of their development from the perspective of economic globalization.