Jakarta, CNBC Indonesia – Often the majority of people assume that all citizens of Chinese descent in Indonesia are very rich. Usually this narrative is accompanied by their hard work ethic. However, this assumption is not all true. In fact, quite a few of them live in the middle class or even below the poverty line.
This assumption was not born recently, but has been going on for hundreds of years. History proves that the emergence of this assumption cannot be separated from the policies of the colonial government in the past, namely the Wijkenstelsel and Passenstelsel policies or what could be called Passen en Wijken Stelsel.
In terms of terminology, Wijkenstelsel was a colonial government regulation that divided territories based on groups. Meanwhile, Passenstelsel is similar to a territorial restriction that means a group cannot freely travel to another group's territory. Of course, the group most affected is ethnic Chinese.
The reason the colonial government implemented such a policy was inseparable from their bitter experience. Previously, in 1740, there was friction between Dutch immigrants and Chinese people in Batavia due to economic factors. This friction resulted in the massacre of thousands of Chinese at the hands of the Dutch Company.
This incident then made the ruler at that time, the VOC, create a policy of grouping (Wijkenstelsel) and restrictions (Passenstelsel). The goal is to monitor Chinese people more closely, so that they don't act out again.
On this basis, writes Mona Lohanda in History of the Magistrates Governing Batavia (2007:243), Chinese people began to be grouped in an area outside Batavia which is now called Glodok. They are also not free to travel because they have to show their identity.
Over time, this policy continued when the Dutch East Indies government was formed. In fact, wrote Benny G. Setiono in Chinese in the Political Vortex (2003: 132), intensive implementation began during forced cultivation, from the beginning of the 19th century to the beginning of the 20th century. The area is not only limited to Batavia, but also Semarang, Rembang, and so on.
When seriously implemented, Chinese people in Java were not free at all. They must be in an area determined by the government. If you want to leave the area, you must ask permission first. The permit must be clearly accompanied by: where, with whom, what to ride, and for how long. If approved, they must pay a licensing fee. If you dare to violate it, be prepared to be subject to a fine of tens of guilders or even imprisonment.
According to historian Ong Hok Ham in History of Peranakan Chinese in Java (2005: 45), all of this makes them isolated, unable to enter other areas, making it difficult for them to interact with the native population. However, on the other hand, this isolation brings blessings.
Isolation makes those who are the majority of traders more solid. They come to trust each other and get to know each other's talents and financial capabilities. Not infrequently they also progress to marriage. All of this ultimately gave birth to a term that Ong Hok Ham called “Marriage capital with capital”. This means that trust successfully marries capital, thus creating new capital that drives economic strength.
“Inevitably there will be 'capital marrying capital' and the growth of capitalism in Kampung Cina,” wrote Ong in Lost Revelations, Shaken Lands (2018: 139).
From here, Chinese villages became new economic centers in urban areas. As well as being his birthplace new billionaires, for example, Sugar King Oei Tiong Ham who became the richest person in the Dutch East Indies in the 20th century.
The rise of capitalism in Kampung Cina then gave rise to the public's view that Chinese people were definitely rich and exclusive, which made them different from native groups. Moreover, along the way, this view also created a gap between Chinese people and other residents.
The view that all Chinese are definitely rich then persists to this day. On this basis, Ong Hok Ham said that the success of Chinese descendants in Indonesia was not solely due to hard work and frugal living. According to him, this is just a myth played by entrepreneurs to persuade other people to work hard and live frugally.
“Because, if it is true that working hard and living frugally can give rise to capitalists, then many farmers who work harder and live more frugally than city entrepreneurs become millionaires. However, this does not happen,” he said. (p.129)
In fact, Ong also thinks that the success of Chinese people has nothing to do with race.
“The attitude of mutual trust that grows in Chinatown is capital for business networks in addition to the important role of family and relationships with the authorities, and ultimately the growth of Chinese capitalism in Indonesia, has nothing to do with race,” said Ong (p. 141)
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