http://www.thejakartaglobe.com/opinion/insight-unwise-nationalism/522948


Insight: Unwise Nationalism
A. Lin Neumann | June 08, 2012

 Hundreds of elementary school children raise Indonesian flags to mark 66 years 
of the nation's independence in Solo. (JG Photo/Ali Lutfi) 
I certainly understand the impulse toward nationalism. Given the long history 
of colonialism in Indonesia and most of Southeast Asia, it is not unusual to 
feel that the sovereign nation is “ours” and that somehow “foreigners” are 
exploiting an unfair advantage. 

Indeed during the independence struggles of former colonies like Indonesia, the 
thunderous calls of leaders like Sukarno to fight for the native soil against 
foreign oppressors were both right and necessary. The colonial occupation 
record — the Dutch in Indonesia, the Spanish and the Americans in the 
Philippines, the Japanese in Korea, the British in a host of Asian countries 
and the French in Indochina — was appalling. 

Whatever their rhetoric, the colonizing nations entered the territories they 
seized in order to exploit natural resources, use the land for profit and pay 
the lowest wages possible to “natives” they treated as racial inferiors. They 
universally created small groups of compradors to help them govern the colonies 
and most held onto their profitable outposts of empire until armed insurgents 
or political necessity made it too costly to hang on. In some cases the 
colonizers first brutally conquered a territory with arms and massacres and 
then later rewrote history to make it appear that their motive was the 
salvation of souls or the uplifting of civilization. In others, it was a more 
straightforward proposition. 

Either way, it is for good reason that the festering wounds of conquest and 
racial insult can take generations to heal but unfortunately the scab can 
easily be picked for the wrong reasons later. That may be what we are 
witnessing in Indonesia. 

Especially during an election season, when politicians compete eagerly to 
attract public sympathy with little regard for the practical effect of the 
policies they may advocate, it is easy for nationalist sentiment to resonate 
and appear reasonable. Add to that the good notices Indonesia has been getting 
from analysts and this may appear to some officials to be a perfect time to get 
tough on foreign investors who want to exploit the country’s minerals, buy its 
banks or make other investments that might be better off going to the sons of 
the soil. 

But hold on a moment. The various restrictions being proposed currently on 
mining, bank ownership, imports and other forms of foreign investment aren’t 
targeted at foreign oppressors, nor do they benefit some group of noble freedom 
fighters. The investors are as likely to come from Asia as the West and the 
potential local beneficiaries of some regulations are among the wealthiest 
people in the region. At a time when Indonesia’s domestic market has saved it 
from the worst effects of global economic troubles and made it the darling of 
foreign investors, I fear that too much attention may have been paid by some 
officials and politicians to the good news. Indonesia may very well become a 
top-tier economy but it hasn’t happened yet. It almost seems as if some 
politicians believe in a kind of “Genesis effect” — if you say something will 
happen it already has. 

But mortals don’t have that kind of power and there is now a pretty consistent 
chorus of caution from foreign investors: Westerners and Asians. Indonesia has 
every right to exercise its sovereignty, but foreign investment has been good 
for this country in terms of jobs, expertise, tax revenues, best business 
practices, etc. There is considerable concern that the nationalist sentiments 
currently building may only be a thinly disguised attempt by some local 
business groups to gain an unfair advantage over foreign companies. If that is 
the case, it could do immeasurable harm to the country. 

Whatever the motivation, if at precisely the time Indonesia is red hot in the 
eyes of the investment world, the country begins to look like it wants to turn 
the clock back to the 1950s, the good news could turn bad quickly. Indonesia 
needs the jobs and the income and the long-term appetite for risk that many 
foreign companies bring to the table. The best of those investors want a 
partnership that builds toward a mutually beneficial future. It would be unwise 
to make them feel unwelcome for the wrong reasons. 

A. Lin Neumann, founding editor of the Jakarta Globe, is the host of BeritaSatu 
TV’s “Insight Indonesia” program.


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