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1 - A Javanese “King” and His Cukong

Published online by Cambridge University Press:  21 October 2015

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Summary

One hankered after power, the other after money, and when they paired up they made a potent team that kept them on top in Indonesian politics and business respectively for three decades. President Suharto and Liem Sioe Liong worked very closely together, building a symbiotic relationship that resulted in huge benefits for both. Liem, founder of the colossal business conglomerate known as the Salim Group, proved himself to be a reliable businessman and became Suharto's main cukong — a Chinese financial backer who is given protection by powerful political or military leaders. In his rise from an itinerant peddler to Indonesia's wealthiest businessman, Liem received patronage from several generals, but most importantly from Suharto himself. The strongman acquired unchecked and, for a long time, uncheckable power and until his shocking resignation in May 1998, was one of the world's longest-serving heads of government. In 1983, sycophantic parliamentarians conferred on him the title Bapak Pembangunan — “Father of Development”, which Suharto cherished, as he liked to claim that all his endeavours were for the good of the “common man”. But while he claimed to identify with the “wong cilik” (Javanese for “little people”), Suharto saw himself as possessing the wahyu, sort of a divine right, to be the country's ruler. An Indonesian historian once commented: “Like a Javanese monarch, Suharto always equated his selfcontrol and harmony in relation to the spiritual world with the well-being of the nation and the state.”

He surrounded himself with people who could serve faithfully and unquestioningly. To stay at the apex of power, Suharto relied on several pillars. One was the military — which the general used effectively. He used money to keep the armed forces loyal to him and used them to suppress political opponents — both real and perceived ones. The military had stepped in to run companies of the colonial Dutch that Sukarno, the first president, nationalized in 1957, and top generals became used to having opportunities to enrich themselves. They became an even bigger player in Suharto's New Order. Another crucial prop for Suharto was financial and other aid from the West. Indonesia was in dire straits when he came into power, and the way he and his team of Western-trained technocrats opened the country for foreign investment was vital for economic growth.

Type
Chapter
Information
Liem Sioe Liong's Salim Group
The Business Pillar of Suharto's Indonesia
, pp. 1 - 20
Publisher: ISEAS–Yusof Ishak Institute
Print publication year: 2014

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