- 期刊
- OpenAccess
The Decline of Conglomerates in Post-Soeharto Indonesia: The Case of Salim Group
並列摘要
A double shock of the Asian currency crisis and the collapse of long-standing Soeharto rule brought about dramatic changes of political economic system in Indonesia. The nexus between state and capital that had been forged during the Soeharto regime underwent reconfiguration or dismantling in the post-Soeharto reformasi (reform) era. Conglomerates were not only hit hard by the economic crisis, but also suffered a blow from the political changes. An extreme case of this capital dismantling was the Salim Group, Indonesia’s largest business group. The Group had already grown out of a politically-leveraged business into a multinational conglomerate with high competence. However, the Indonesian public regarded the Group as a symbol of Soeharto-linked ethnic Chinese conglomerate because of close ties between the Group’s founder, Liem Sioe Liong, and Soeharto. The Group’s domestic business was dismantled primarily because of the political reason, while its overseas business was restructured owing to heavy debt burden. This case shows how Indonesia dealt with dominant ethnic Chinese capital on the occasion of regime change and also how a highly-diversified and highly-leveraged conglomerate totally transformed itself through the crisis.
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