BADAN PERMUSYAWARATAN KEWARGA-NEGARAAN IN-

DONESIA (Baperki, Consultative Body on Indonesian Citizenship). A political organization of Indonesian Chinese, founded by Siauw Giok

38 • BADAN URUSAN LOGISTIK NASIONAL Tjhan (1914–1980) on 13 March 1954 to succeed the Partai Demokrat

Tionghoa (Party of Democratic Chinese). It encouraged Chinese to ac- cept Indonesian citizenship but defended the right of Chinese to retain their culture as citizens. This attitude was opposed by the proassimilation Lembaga Pembinaan Kesatuan Bangsa (Institute for Developing Na- tional Unity). Baperki was banned in 1966. [1045, 1063]

BADAN URUSAN LOGISTIK NASIONAL (Bulog, National Logistic Supply Organization). Established in 1967 as a government purchase agency, Bulog expanded its role in the 1970s to supervise and stabilize the distribution and price of basic commodities such as rice, sugar, and flour, partly as an aid to political stability. It was sharply criticized for corruption in the allocation of distributorships by the Commission of Four.

Despite deregulatory packages instituted by the Suharto government in 1995 and 1996, Bulog retained its monopolies, including the exclusive right to import wheat and sugar. It attempted to stabilize rice prices in 1996. In 1997 it came under attack from the International Monetary Fund (IMF), which tied further financial assistance to a substantial deregula- tion of the domestic food market; as a result, Bulog’s monopoly of the importation of all commodities with the exception of rice was ended. Un- der the presidency of Abdurrachman Wahid, its deputy chairman was jailed for providing the president and his associates with considerable funds they had requested without issuing a decree. [0761, 0763]

BADUI. Tribe of southern Banten, widely believed to be descendants of pre-Muslim Sundanese who refused to convert to Islam, but probably of much greater antiquity. They worship lelembut, ancestral spirits who dwell near the source of the rivers Ciujung and Cisemet. Only 40 Badui families, the “Inner Badui,” are permitted by custom to inhabit this sa- cred area, and these are forbidden all contact with the outside world. The remainder, the Outer Badui, are permitted some contact but are forbidden to make use of introduced technology such as horses, writing, vehi- cles, and beds. See also ASLI.

BAHASA INDONESIA . See INDONESIAN LANGUAGE. BAJAU. Also known as Sea People (orang laut) or Sea Gypsies, the Bajau

are a seafaring Malay people of eastern Indonesia and the southern Philip- pines, typically living aboard boats or in small settlements of temporary

BALI • 39 houses on stilts over the sea. Their dispersal from a presumed home in

southern Sulawesi may date from the fall of Makassar to Dutch and Bugis forces in 1667 or to the commercial opportunities offered by trepang collection. During the 18th–19th centuries, Bajau fleets ranged as far as Australia in search of trepang for the China trade. [0549]

BALAI PUSTAKA. The government commission for literacy and popular publication, founded in 1917 as the Comite (later Kantoor) voor de Volks- lectuur (Committee, Office for Popular Literature). It published cheap reading material in Malay, Sundanese, and Javanese (both original works and translations from Dutch, including the letters of Raden Ajeng Kar- tini in 1921); maintained libraries; and provided court interpreters. [0219, 0231, 0234]

BLAMBANGAN. The last Hindu kingdom on Java, controlling the eastern end of the island (Besuki and Probolinggo) after the fall of Ma- japahit. It was fought over by Mataram and the Balinese state of Gel- gel in the early 17th century, but flourished as an independent kingdom from 1670 to 1690. In 1697 it was attacked once more by Mataram and the Balinese rulers of Buleleng. Mataram transferred its claim over the region to the Dutch East Indies Company (VOC) in 1734, and the company subdued it in a major campaign in 1771–1772. Constant warfare and the piratical raids of Madurese severely depopulated the region, and further destruction was caused by an eruption of Mt. Ijen in 1817. In the 19th century, the area was extensively settled by Madurese. The name now refers to the forested peninsula on Java’s southeast corner rather than to the former territory of the kingdom. [0502, 0577]

BALI. Although the culture and society of Bali have been studied extensively, until recently relatively little was written on the island’s history. Probably Hindu from the eighth or ninth century (the first Hindu inscrip- tions record a king Warmadewa in the ninth century), Bali was ruled at least in part by the Javanese king Airlangga in the early 11th century and was conquered by Majapahit in 1334. A period of intensive Javanization followed, and contemporary Balinese sometimes refer to themselves as wong Majapahit (people of Majapahit). There is said, too, to have been considerable migration of Javanese Hindus to Bali following the fall of Majapahit to the pasisir states in 1527. The island remained divided between nine or so independent states—Klungkung, Karangasem, Mengwi, Badung, Bangli, Tabanan, Gianyar, Buleleng, and Jembrana—though the

40 • BALI rulers of Klungkung, whose territory included the temple of Besakih on

Mt. (Gunung) Agung and who were known as the Dewa Agung, were sometimes regarded as overlords. Slaves were a major export in the 17th and 18th centuries, the average annual export being 1,000–2,000. This trade was in the hands of the rajas. Balinese formed an important element in the Betawi communities around Batavia. Balinese mercenaries also fought in various wars in Java.

Dutch political interest in the island began in the 19th century. To ex- clude other Europeans, the Dutch obtained acknowledgments of sovereignty from Badung, Klungkung, Karangasem, and Buleleng in 1841 and launched a series of military operations on the island in 1846, 1848, and 1849. The Dutch were also keen to stop Balinese piracy and plunder of shipwrecks, and they attempted to intervene to control practices such as slavery (common) and widow-burning (very uncommon). Buleleng and Jembrana were brought under closer control in 1853, and Karangasem and Gianyar were conquered in 1882. The plunder of a Dutch shipwreck in 1904 provided the pretext for full military operations on the island against Badung in 1906 and Klungkung in 1908. In the final battles of each campaign, the respective royal families committed collective sui- cide (puputan), walking into the guns of the Dutch forces. After a period of direct rule by the Dutch, during which Singaraja on the north coast was the island’s capital, the former kingdoms were restored in 1929 to their former rulers as zelfbesturen (self-governing territories under Dutch authority) in a massive ceremony at Besakih.

The Japanese military administration continued the Dutch system of indirect rule but coupled this with an increasingly harsh system of surplus extraction. Under their rule, existing conflicts intensified especially as the Japanese attempted to mobilize the Balinese behind their war effort. When Dutch forces landed in March 1946, they encountered strong military opposition that continued until 1948. Using pro-Dutch Balinese ele- ments, however, they incorporated the island into the Dutch-sponsored federal state of East Indonesia (see FEDERALISM; NEGARA IN- DONESIA TIMUR [NIT]) in 1946. After the NIT was dissolved in 1950 many of the old power arrangements remained more or less intact, the kingdoms being converted into kabupaten and the rajas, or members of their families, generally taking the office of bupati.

Head of the region (kepala daerah) and from 1958 governor of the province was Anak Agung Bagus Suteja (?–1965). Close to Sukarno and officially nonparty, Suteja played an important role in increasing the representation of the Partai Komunis Indonesia (PKI) and other leftists in

BANDA ISLANDS • 41 the island’s administration and legislative bodies. Social tensions

mounted during the early 1960s, partly as a result of a land reform campaign by the PKI, and apprehension mounted especially after several thousand people died in an eruption of Mt. Agung in 1963. In the after- math of the Gestapu, Suteja’s authority weakened, and after he was re- moved to Jakarta in late November 1965 troops began to arrive from Java and the massacre began. Perhaps 60,000 people were slaughtered as alleged communists or leftists in 1965–1966.

Bali had been a significant tourist destination in the early 1930s, but under the New Order, the island became a major international tourist center, with its attraction expanding exponentially in the 1990s and accounting for about a third of Indonesia’s revenue for tourism. After Suharto’s fall, about 1.5 million foreigners were visiting the island annually, for it was seen as a place largely immune to the ethnic and religious violence that was plaguing other parts of the archipelago. This impression was shattered on

12 October 2002, when powerful bombs destroyed a nightclub in the Kuta Beach tourist district, killing about 202 people, 89 of them Australians. See also HINDUISM; LANGE, MADS JOHANSEN; MASSACRES OF 1965–1966. [0091, 0205, 0711, 0819, 0824, 0825, 0832, 1214, 1216, 1382]

BANDA ISLANDS. Small archipelago in Maluku, known especially for the cultivation of nutmeg. Dependent on Java for rice, Banda came under the rule of Majapahit in the 14th century and attracted a Portuguese fleet under d’Abreu in 1511. Dutch trade in the islands began in 1599, and the Dutch East Indies Company (VOC) under Jan Pieterszoon Coen annexed them in a bloody campaign from circa 1609 that left the islands largely depopulated, perhaps 15,000 Bandanese being killed. The islands were divided into nutmeg “groves” or perken, each perk being under a VOC perkenier with slaves to work for him. Perkeniers were obliged to deliver their produce to the company and, later, the colonial government at fixed prices. With abolition of the monopoly in 1864, the perkeniers became immensely wealthy until the depression of 1894.

During the late colonial period, Banda Neira, the main island in the group, became a place of exile for prominent Indonesian nationalist leaders, including Tjipto Mangoenkoesoemo, exiled there in 1928; Iwa Kusumasumantri (1899–?), who arrived in 1930 (both Mangoenkoe- soemo and Kusumasumantri were permitted to leave in early 1941); and Sutan Sjahrir and Mohammad Hatta, who were transferred there from Boven Digul in 1936 and were only allowed to return to Java when the Japanese invaded in January 1942.

42 • BANDITRY During the 1980s, the islands were developed for tourism by Des

Alwi (whom Sjahrir had adopted during his exile on the island), but their popularity declined markedly during the interethnic violence following the fall of Suharto, which engulfed the Maluku islands. [0087, 0491]

BANDITRY. Crime is presumably as old as human society in Indonesia,

but the earliest known form of organized crime in the archipelago is rural banditry, along with its marine counterpart, piracy. The plunder- ing of travelers and the raiding of outlying settlements is often difficult to distinguish from early state building, and a number of rulers of parts of Java, notably Ken Angrok, began their careers as rural criminals. Criminal gangs generally formed around a single leader and did not survive his death or loss of prestige. Leaders commanded not only martial arts (pencak silat) but also magical powers such as the ability to confer invulnerability, invisibility, or inaudibility on their followers. The extent of rural banditry is always difficult to estimate, since there are ample reasons for both exaggeration and underreporting, but many areas of Java had a reputation as “unsafe” throughout the colonial period.

Bandit gangs frequently took part in peasant uprisings against the colonial power and in the 20th century came into contact with nationalist groups. Sarekat Islam (SI) and the Partai Komunis Indonesia (PKI) in particular valued the bandits both as a source of potential armed strength and as a representation of the strength of the mass of the people. Gangs provided some of the armed support for the PKI’s uprising in the Jakarta region in 1926, but were generally ineffective against the colonial police.

During the Revolution, gangsters in the Jakarta region and elsewhere joined nationalists in armed resistance organizations (lasykar), but they were generally unsuccessful in holding back the Dutch and most were suppressed by the Republic’s own army in the course of the Revolution. In the chaotic years that followed the transfer of sovereignty, rural banditry was rife in many regions, though it was often associated with political dissent. Under the New Order, greatly increased social control in the countryside diminished the incidence of banditry there, though urban crime remained rampant. In the 1982 elections, in particular, figures associated with the government were said to be employing urban criminals both to intimidate the other parties and as agents provocateurs. The elections were followed by a dramatic upsurge in violent crime, perhaps encouraged by this rumor of approval, which was suppressed, however, by

BANJARMASIN • 43 the government’s program of extrajudicial killings known as Petrus

(penembakan misterius), beginning early 1983, which claimed several thousand victims. See also PEMUDA PANCASILA. [0485, 0734, 0743, 1228]

BANDUNG. Major city in the Priangan, developed by the Dutch after 1810 as a center for the region’s plantation industry. It was the capital of the Priangan from 1864 and grew rapidly after the arrival of the railway in 1880. The colonial Department of War transferred there in 1916, and the city was proposed as an eventual capital of the Netherlands Indies. In 1946, the southern part of the city was burned by Indonesian nationalists forced to evacuate by the Allies. [0561, 0681]

BANDUNG CONFERENCE. See ASIA-AFRICA CONFERENCE. BANGKA. Large island off the southeast coast of Sumatra, site of major

tin mines since 1710, operated at first by the sultan of Palembang, who began to introduce laborers from China, Siam, and Vietnam. British forces seized Bangka in 1806 and abolished the sultanate in 1816, but the island was restored to the Dutch, who continued tin mining as a government enterprise. The island also became a major exporter of white pepper in the 19th century, producing 90 percent of the world supply. After falling to the Japanese in World War II, Bangka was reoccupied by the Dutch in early 1946. The Dutch exiled Sukarno, Mohammad Hatta, Haji Agus Salim (1884–1954), and other Republican leaders to the island after their second “Police Action” of 19 December 1948. [0658, 0801]

BANGSA INDONESIA (“Indonesian nation”). Ambiguous ethnic term that may refer simply to those born in Indonesia; more commonly, however, it describes ethnicity and excludes citizens of European, Chinese, Indian, Arab, and other exogenous ancestry. See also ASLI; PRIBUMI.

BANJARMASIN. Kingdom on the Barito River in southern Kalimantan, reputedly founded by Empu Jamatka in 1387. It quickly became an important source of diamonds, bezoar stones, and dragon’s blood (a plant exudate) but was dependent on Java for the supply of rice and was trib- utary in succession to the Javanese states of Majapahit, Demak, and Mataram. Its ruler converted to Islam in circa 1520, and the sultanate received many refugees from the north coast of Java after the fall of Surabaya to Mataram in 1625. In the 17th century pepper, gambier,

44 • BANK PEMBANGUNAN INDONESIA

gold, and rattan became major trading commodities, attracting Chinese

traders as well as the Dutch and English East India Companies. Large areas of alang-alang grassland in the region today are a legacy of the in- discriminate clearing of forest for pepper and gambier cultivation in this period. Both the Dutch and the British attempted to enforce monopolies in the port, but successive agreements with sultans were unenforceable as economic and political power collected in the hands of powerful pepper planters. The sultan of Banjarmasin formally ceded sovereignty to the Dutch in 1786–1787, though he retained his throne and continued to rule with little interference.

Governor-General Herman Willem Daendels abandoned Dutch hold- ings in Banjarmasin in 1809, but in 1857 the Dutch reasserted their right to appoint the deceased sultan’s successor and imposed a half-Chinese son of the previous sultan on the unwilling aristocracy. A full-scale war of succession ensued (1859–1863), the anti-Dutch party, strongly Is- lamic, being led by a junior prince, Pangeran Antasari (1797–1862), and

a peasant leader, Sultan Kuning. The Dutch formally abolished the sultanate in 1860. Sporadic fighting continued beyond the formal end of major hostilities until 1905.

The area was a site of tough resistance to the Dutch by guerrillas under Hasan Basry in the period 1945–1949, and much of the hinterland remained in Republican hands, though, to the indignation of local leaders, it was not recognized formally as Republican territory in the Linggajati or Renville Agreements. In January 1948 the Dutch established a federal state, the Daerah Banjar, to be a constituent of the Indonesian federal republic (see FEDERALISM), but this was dissolved in March 1950. Resentment against central government policies led to a local uprising under Ibnu Hajar, which became associated with the Darul Islam and lasted until 1963. [0811, 0693]

BANK PEMBANGUNAN INDONESIA (Bapindo, Indonesian Develop- ment Bank). State owned, the bank employed thousands of employees, and when it lost half its capital in a loan scam by one of its clients, Eddy Tansil, which was revealed in 1994, Suharto refused pressure from Fi- nance Minister Mar’ie Muhammad to liquidate the bank. (Tansil was ac- cused of diverting to his private use a US$420 million Bapindo loan in- tended to fund a West Java petrochemical project.) In the resulting trials, four of Bapindo’s directors were sentenced to 4–8 years in jail. Eddy Tansil was sentenced to life imprisonment but escaped and fled the coun- try in 1996. [0761]

BANKING • 45 BANKING. The Dutch East Indies Company (VOC) initially drew its

capital from the Netherlands and, having a monopoly of trade in the archipelago, had no wish to allow local credit facilities for others. In 1746, however, Governor-General Gustaaf Willem, baron van Imhoff (1705–1750), established a Bank van Leening (Lending Bank) in Batavia for the support of trade enterprises. This minor retreat of Dutch capital from direct investment to the financing of others was continued in the 19th century by the Nederlandsche Handel Maatschappij, which began as a trading company and ended as a largely banking operation. Other major banks in the Netherlands Indies were the Nederlandsch- Indische Handelsbank (established 1863), the Nederlandsch-Indische Escompto-Maatschappij (established 1857), and the Koloniale Bank. The Java Bank (Javasche Bank) was established in 1828 as a semipri- vate, semigovernment bank of circulation (issuing currency), while the Algemene Volkscredietbank (founded 1934) undertook small-scale loans to and from the public.

During the Japanese occupation, commercial banking was taken over by the Yokohama Specie bank while the Syomin Ginko replaced the Volkscredietbank, becoming Bank Rakyat after independence. When the Indonesian Republic nationalized the Java Bank in 1953, turning it into the Bank Indonesia, the Bank Industri Negara (origi- nally the Bureau Herstel Financiering, established by the Dutch in 1948) was made responsible for financing industrial development, while the BNI financed imports and exports. Other Dutch banks were nationalized in 1958, Escompto becoming the Bank Dagang Negara (State Trading Bank), which subsequently especially financed mining. In 1965 the various state banks were merged into the BNI, but they separated again in December 1968. A National Development Savings Scheme (Tabanas, Tabungan Pembangunan Nasional) was introduced in 1971. On 27 October 1988 Indonesia announced a major deregula- tion of the banking sector, including easier availability of foreign ex- change licenses and permitting state enterprises to deposit funds with private banks.

As a result, the number of banks increased from 112 in 1988 to 239 in 1996, many of which were not financially sound, as they had been mis- managed or exploited by their owners. There was an immense volume of uncollectable credits that had often been used to finance property projects run by other companies under the aegis of a bank’s owners. The central bank (Bank Indonesia) had to come to the assistance of the failing banks, and there was a growing number of financial scandals (see BANK

46 • BANKING PEMBANGUNAN INDONESIA [BAPINDO]). There were also

charges of corruption against Bank Indonesia, and in December 1997 it fired four of its seven directors. In 2003, after a one-year trial, three of its former directors were sentenced to jail sentences ranging from two and one-half to three years for abuse of power in disbursing liquidity support funds totaling US$1.1 billion.

In November 1997 in accordance with International Monetary Fund (IMF) recommendations, the finance minister closed 16 private banks con- sidered insolvent. Two bankers, both members of the Suharto family— Bambang Trihatmodjo of Bank Andromeda and Probosutedjo (Suharto’s brother-in-law) of Bank Jakarta—refused the order, but ultimately both had to yield. By January 1998, the public had lost all faith in the banking system and was withdrawing and transferring massive amounts to foreign banks. During the Asian financial crisis, the Indonesian government had to extend approximately US$13 billion in emergency loans to shore up local banks, and it struck a deal for these loans to be repaid in four years. An Indonesian Bank Restructuring Agency (IBRA) was set up in 1998, as a result of the IMF’s US$76 billion bank bailout. Under measures passed in November 1998 and May 1999, banking laws were amended to allow foreign-owned banks to acquire up to 100 percent of shares in existing banks, including the former state banks.

Under President Abdurrachman Wahid, oversight of IBRA came under the Ministry of Finance, and when Megawati Sukarnoputri succeeded him as president she switched this oversight to the Ministry of State-Owned Enterprises. IBRA experienced manifold difficulties, being unable to meet its targets for asset sales and having six different heads in the 30 months leading up to August 2001. However, in 2002 it proposed extending the debt repayment deadline by six more years and cutting the interest rate on the outstanding debt. It remained reluctant to institute criminal prosecution against prominent debtors, including the eldest daughter of former President Suharto, and in Au- gust 2002 the appeals court overturned a corruption conviction imposed in March on the central bank governor, Syahril Sabirin, stem- ming from the 1999 Bank Bali scandal. With IBRA scheduled to terminate in February 2004, the government planned to set up a temporary banking guarantee implementation unit (UP3) under the Min- istry of Finance to implement the government’s guarantee on bank de- posits until a deposit guarantee agency (LPS) could be set up. See also CURRENCY; PAWNSHOPS. [0057, 0381, 0382, 0384 0315, 0390, 0394, 0479, 0761]

BAPAK • 47 BANTEN (Bantam). On the northern coast of West Java, Banten was

seized by Muslims of the sultanate of Demak in 1527. It rapidly expanded during the 16th century, and under Fatahillah conquered the Pa- jajaran port of Sunda Kalapa in the early 1520s. After Banten defeated

a Portuguese fleet in Sunda Kalapa harbor in 1527, the city was re- named Jayakarta. Banten emerged as the dominant entrepôt and outlet for pepper from West Java and South Sumatra. It was in continual con- flict with Mataram over control of the Priangan. In 1601 ships of the Dutch East Indies Company (VOC) defeated a Spanish-Portuguese fleet in Banten harbor. The city began to decline after the foundation of Batavia in 1619. Thomas Stamford Raffles abolished the Banten sultanate in 1813. In 1888 a major anticolonial uprising took place in Ban- ten, and in 1926 it was one of three regions where the Partai Komunis Indonesia (PKI) uprising broke out.

During the Revolution, it was not reconquered by the Dutch until their second “Police Action” and was one of the few regions not drawn into Dutch federalist projects. There was friction between local leaders and the Republican government throughout the Revolution, and in 1949 the Republic crushed a revolt against its authority.

As result of the post-Suharto decentralization policies, Banten, now

a province, gained power to regulate activities at some of its ports that handle the export of the products of Krakatau steel to the United States, Europe, and other parts of Asia. [0822, 0836, 0660]

BANTENG (Bos javanicus). Bovine similar to cattle, occurring wild or feral on many islands and elsewhere in Southeast Asia, recognizable by a white disk on the buttocks. First known to have been domesticated in Thailand before 3500 B.C., it is valued for its agility, its easy trainability, and more recently its low-fat meat. Most “cattle” on Bali and Timor are in fact banteng, while the cattle of Madura appear to be a stable banteng-zebu cross that was developed circa 500 A.D. A banteng’s horned head represents national unity on the Indonesian coat of arms and was adopted as symbol by the Partai Nasional Indonesia (PNI) and subsequently Partai Demokrasi Indonesia (PDI). It is sometimes confused by Westerners with the buffalo (kerbau), to which, however, it is not closely related. [1154]

BAPAK (“father”). Common term of deferential address for superiors, believed to promote a collectivist, familial attitude to society. Often abbre- viated to “Pak.” Under the New Order, it largely replaced the more egal- itarian “bung” as a term of address for political leaders. In 1981, Suharto

48 • BARISAN PELOPOR accepted the title Bapak Pembangunan (father of development). Bapak

also denotes a patron who protects, sponsors, and otherwise assists pro- tégés (anak buah). See also PATRIMONIALISM. [1391]

BADAN PERMUSYAWARATAN KEWARGA-NEGARAAN IN-