3 - Establishing a Foothold

Summary

The end of the Japanese Occupation in 1945 was universally celebrated but brought fresh challenges. As the Japanese were surrendering, nationalist leader Sukarno proclaimed independence on 17 August, raising a red and white flag hastily stitched by his young wife Fatmawati. The declaration of independence, however, was not recognized by the Dutch, who were keen to reassert control over their colony and all its resources. The tussle between the colonial forces and the independence fighters went on until 1949. During this time, the Dutch tried to choke off supply lines to the revolutionary soldiers, imposing sea and land blockades. Suppliers had to sneak through Dutch controlled areas, turning them effectively into smugglers. For those willing to take the risks, smuggling was a lucrative activity.

For small itinerant traders like Liem, it was a chance to start recouping his lost income. His hard-earned savings in Japanese Occupation-issued notes — stashed in sacks — were wiped out overnight when it was declared worthless. As he recalled: “The new government compensated every household by the number of occupants living there: regardless of how much money you had, each person was entitled to only one rupiah. There were eight of us living in our house, and we received a total of eight rupiah. That was all. The Occupation ended but I had to start all over again.” Adding to his responsibilities as a family man was the arrival of his first-born, Albert, that year. Although he was back to square one, Liem was luckier than most; he was once again able to capitalize on the strong Hokchia kinship, borrowing capital from his clansmen to restart his business. There was even a new customer base — the independence fighters. He joined others in smuggling basic necessities to them, laying the groundwork for a role that would reach far beyond being just a supplier. It was during this time that he established important contacts that later helped put him on the road to riches.

STRUGGLE FOR INDEPENDENCE

After the Japanese surrender, the Dutch, aided by British and other allied forces, waged a bitter war with the nationalists in their attempt to recover their colony.