Adaptable capitalist : the Dutch in Indonesia

Economic and political integration understandably command much at tention today. Disintegration, exemplified by the breaking up of colonial empires, generally appears to receive attention commensurate with the amount of physical violence involved in the process. Once the violence sub sides, interest in the problems that disintegration creates for the ex-mother country dwindles. The newly-independent nation, of course, makes known its desire for rapid economic development. Appropriate overtures are made to Washington, Moscow, and the United Nations. And so, very quickly, the focus is shifted to the integration of the new nation into the economy of the "world" ? be it West, Communist, or non-aligned. Meanwhile, western businessmen must adjust to the disintegration of their world. In some cases, such as in some of the former French colonies in Africa, the new conditions differ little from the old, and not much ad justment is necessary. In others much must be done because conditions change drastically. This was the case in Indonesia, where, in December 1957, Dutch firms were "taken-over" and Netherlands expelled from the country. To what extent was Dutch business trapped in Indonesia and apparently unable to adjust? What kinds of companies appear to have survived the disastrous turn of events and what had they done or did they do to improve their chances for survival? Information drawn from a very small segment of recent economic history suggests some answers to these queries. These may be instructive in forecasting the prospects for businessmen in colonial areas on the threshold of political independence.