Surviving Sukarno: British Business in Post-Colonial Indonesia, 1950–1967

Drawing principally upon a rich vein of previously unexploited business records, this paper analyses the experience of British firms in Indonesia between the achievement of independence and the beginnings of the Suharto regime. As in The Netherlands East Indies, British enterprises occupied a significant position in post-colonial Indonesia in plantations, oil extraction, shipping, banking, the import-export trade, and manufacturing. After the nationalization of Dutch businesses from the end of 1957, Britain emerged as the leading investing power in the archipelago alongside the United States. However, during Indonesia's Confrontation with British-backed Malaysia (1963–1966), most UK-owned companies in the islands were subject to a series of torrid (albeit temporary) takeovers by the trade unions and subsequently various government authorities. Most of these investments were returned to British ownership under Suharto after 1967. But, in surviving the Sukarno era, British firms had endured 15 years of increasing inconvenience and insecurity trapped in a power struggle within Indonesia's perplexing plural polity (and particularly between the Communist Party and the military). Indeed, the Konfrontasi takeovers themselves, varying in intensity from region to region and from firm to firm, were indicative of deep fissures within Indonesian administration and politics. The unpredictable and unsettled political economy of post-colonial Indonesia meant that the balance of advantage lay not with transnational enterprise but with the host state and society.