BUSINESSWEEK ONLINE : OCTOBER 9, 2000 ISSUE
INTERNATIONAL ECONOMICS

The Ethnic Chinese and the Indonesian Economy


Since thousands of ethnic Chinese were uprooted, Jakarta's business culture has been limping. The impact on the economy:

-- About 10,000 professionals, managers, and entrepreneurs fled the country, taking billions of dollars with them

-- Chinese-Indonesians ran conglomerates that are now $80 billion in debt, but the owners are no longer around to negotiate workouts

-- Continuing violence has kept new foreign investors away

-- The rural credit system, in which ethnic Chinese traders made loans to indigenous farmers against future harvests, has broken down



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RELATED ITEMS
Wages of Hatred

TABLE: The Ethnic Chinese and the Indonesian Economy

CHART: Indonesia Struggles

Keeping an Angry Eye on Indonesia (int'l edition)



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