MAKASSAR COPRA AS A TRIGGER OF STRUGGLING FOR POWER BETWEEN CENTRAL AND LOCAL GOVERMENT: A HISTORICAL STUDY OF REGIONAL POLITICAL ECONOMY IN INDONESIA

central government of Jakarta. For example, there was a claim of South Moluccas Republic Movement and Permesta (Whole people struggling) for economic equity. The gain of copra trading which divided into 70% for local and 30% for central government became national political problem in maintaining the central and local government relationship. That???s why, the local conflict in Eastern Indonesia had been occuring until now and being a problem for developing a democratic modern Indonesia.\ud Nationalization of foreign enterprises is one of the most crucial phenomena in Indonesia history during the period of 1950s. The idea of nationalization of foreign enterprises in Indonesia has actually emerged during the revolution era (Kahin, 1952: 172-178). This was related to the fact that most parts of Indonesian economic resources were still in hand of foreign enterprises. It is said that Indonesian independence at that time was solely a political achievement. Politically, Indonesia was free from colonization, but economically it still depended on its former mother country, the Netherlands. During the revolution, about 25 per cent of the Indonesian GDP and 10 per cent of the important positions in modern economic sectors were still controlled by the Dutch. Even in 1950, more than 6,000 Dutch personnel held senior positions in banks, agricultural and mining enterprises, trade companies, etc. (Thee Kian Wie, 1995: 2; Dick, 2002: 153-93). This can be understood since during that time Indonesia faced the paucity of experienced technicians and managers (Glassburner, 1971: 50). \ud This paper is an attempt to contribute to our new understanding and enriches the reading materials of historiography of maritime economic history and describes how the political aspects predominate the fluctuation of economic integration in Modern Indonesia. Makassar has been known long as a trading gate of Eastern part of Indonesia. The effort of Dutch government to take control over Makassar was not merely as a political interest but rather as a global economic politics, mainly to balance the progress of English monopoly whose based in Singapore. At the first time, the two nations not only tried to take control every colonized harbours, but also cultivated commodities which had world marketing prospects. This effort was also extended to Makassar where Makassar was made as Coconut oil industrial city for example the founding of Olie Fabrieken Insulindo Makassar which its aim was to control the world copra marketing price.\ud That???s why, controlling Makassar was important not only its harbour, but also made it as world copra marketing network. The involvement of Makassar in world marketing resulted in the integration of regional economy of Eastern Indonesia. World economic depression in 1930s gave impacts on copra Makassar exporting decreased. The role of Dutch government in controlling economy was more powerful until 1950s and changed to political affairs. For example. the nationalization of foreign business was sponsored by politicians. On the other hand, democratization of local economy was urgently demanded by local government upon central government of Jakarta. For example, there was a claim of South Moluccas Republic Movement and Permesta (Whole people struggling) for economic equity. The gain of copra trading which divided into 70% for local and 30% for central government became national political problem in maintaining the central and local government relationship. That???s why, the local conflict in Eastern Indonesia had been occuring until now and being a problem for developing a democratic modern Indonesia