January 29, 2025 • Business • by Yutaka Tokunaga

The Spirit of Chinese Year: Lessons from 10 Years in Indonesia

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Happy Chinese New Year. As a Japanese expatriate living in Indonesia for over a decade, I have had numerous opportunities to work, socialize, and build deep friendships with the Chinese Indonesian community (often referred to as Tionghoa). Witnessing their economic success, historical struggles, and incredible ability to bounce back has provided me with invaluable life and business lessons.

In this article, I want to explore the pivotal role they play in Indonesia, reflect on their complex history, and share the lessons I’ve learned from their journey.

The Economic Powerhouse: Why Chinese Indonesians Thrive

It is no secret that the Chinese community is a central pillar of the Indonesian economy. They hold significant influence across various sectors, including commerce, manufacturing, real estate, and finance, contributing a substantial portion of the nation’s GDP.

From my observation, their business success is rooted in three distinct cultural pillars:

Diligence and Efficiency: There is a relentless pursuit of excellence and a “hands-on” approach to every task.
Long-term Vision: They prioritize building lasting trust (Guanxi) over quick, short-term profits.
The Strength of Family Business: By leveraging family bonds, they create resilient structures that can diversify risks effectively.

Perhaps their greatest strength is their network-based economy. This interconnectedness extends beyond Indonesia to the broader Southeast Asian Chinese diaspora, enabling rapid capital raising and seamless information sharing—a model that remains highly relevant in today’s globalized world.

A Long History of Migration and Adaptation

The presence of the Chinese community in Indonesia is the result of a centuries-long migration process:

Early Migration (13th Century): Traders from Southern China (Fujian and Guangdong) arrived seeking spices and ceramics, settling primarily in Java and Sumatra.
Colonial Era (17th–19th Century): The Dutch East India Company (VOC) utilized Chinese migrants as intermediaries for trade and tax collection. Unfortunately, colonial “divide and rule” policies often isolated the community from the indigenous population.
Post-War Immigration (Mid-20th Century): Many fled political unrest in China to start from zero in Indonesia.

Today, most Chinese Indonesians are 3rd to 5th generation. While many no longer speak fluent Chinese, the “survivor mentality” of their ancestors remains deeply embedded in their DNA.

Facing the Shadows: A History of Persecution

Despite their contributions, the community has faced tragic periods of discrimination and violence:

1740 Batavia Massacre: Thousands were killed under Dutch suspicion of rebellion.
1965-66 Anti-Communist Purge: In the wake of political upheaval, many Chinese Indonesians were targeted, and their cultural identity—including the use of the Chinese language—was suppressed for decades.
1998 Jakarta Riots: Triggered by the Asian Financial Crisis, the community became scapegoats for political frustration. The violence during this period remains a somber chapter in human rights history.
The Ahok Incident (2016-2017): Even in recent years, political tension surfaced when Basuki Tjahaja Purnama (Ahok), the first Chinese Christian Governor of Jakarta, was imprisoned on controversial blasphemy charges.

The Art of Bouncing Back: How They Rebuild

What I find most inspiring is how the community recovers after every crisis. Their resilience stems from:

Unwavering Community Solidarity: They support one another through informal credit circles and social safety nets.
Investment in Education: Parents prioritize high-quality education above all else, ensuring the next generation has the intellectual capital to succeed.
Social Contribution: Through philanthropy and community service, they continue to work toward restoring trust and harmony within the broader Indonesian society.

Summary: Indonesia as a Global Model for Diversity

With over 300 ethnic groups, Indonesia is a laboratory for multiculturalism. The history of the Chinese community—marked by both friction and collaboration—offers a vital lesson for a world currently divided by geopolitical tensions.

While challenges remain, Indonesia’s ability to harness “Unity in Diversity” (Bhinneka Tunggal Ika) is a powerful model. By respecting the struggles and successes of all its people, Indonesia has the potential to lead by example on the global stage.