Minangkabau businesspeople

Minangkabau businesspeople refers to merchants from the Minangkabau Highlands in central Sumatra, Indonesia. Minangkabau are the ethnic majority in West Sumatra and Negeri Sembilan. Minangkabau are also a recognised minority in other parts of Indonesia as well as Malaysia, Singapore and the Netherlands.

History

In the seventh century, Minangkabau merchants sold gold in Jambi and were involved in the formation of the Malayu Kingdom. They became influential traders who operated on the west and east coasts of Sumatra. Initially, the primary trading commodity of Minangkabau society was gold. Besides gold, Minangkabau merchants also brought spice from the Sumatran hinterland to be sold in the Straits of Malacca.

Many Minangkabau people worked as intermediary traders for the Srivijaya empire, the Sultanate of Aceh and the Sultanate of Malacca. Minangkabau merchants built trading posts along the west coast of Sumatra from Meulaboh to Bengkulu.

During the latter part of the eighteenth century and the early nineteenth century, Minangkabau businesspeople developed a flourishing trade in gambier, coffee, and textiles. This led to conflicts with both local rulers and the Dutch. The Minangkabau traders who sought free markets on the east coast of Sumatra were attempting to break the monopolies of the Dutch and the local political authority. The population of Minangkabau merchants declined after the Dutch defeated the Minangkabau people in the Padri War. Thereafter, West Sumatra and its trading system were under the control of the Dutch East Indies until Indonesia's independence in the late 1940s.

In the 1950s, a number of Minangkabau businesspeople emerged as indigenous traders among the Chinese. The most prominent included Rahman Tamin, Anwar Sutan Saidi, Sidi Tando, Hasyim Ning, Djohan and Djohor, and Sutan Sjahsam. Tamin traded in small-holders rubber, tea, coffee, and pepper. Two brothers, Djohan and Djohor, worked with Dasaad on the import of textiles from Japan and the import of raw cotton for the Indonesian textile industry. Sidi Tando opened a paint factory and moved into shipping in the early 1960s. Sutan Sjahsam, the brother of PNI figure Sutan Sjahrir, owned an import company, N.V. Soetan Sjahsam Corporation, and was the founder of Indonesian Capital Market. Hasyim Ning, the Mohammad Hatta's step-brother, developed the automotive industry. In 1952, Ning was appointed President Director of The Indonesian Service Company, which imported and assembled Dodge trucks and Willey's jeeps.

Types of business

Restaurant

Restaurants and food services are the Minangkabau merchants' favored sector. Minangkabau restaurants, known as Padang Restaurant', can be found in many Indonesian cities as well as in Malaysia and Singapore. The merchants always build their own brand for their restaurants, as was the case with Restoran Sederhana, the biggest Minangkabau restaurant chain, which has over 160 outlets across Indonesia. Besides Restoran Sederhana, other Minang restaurant chains that have expanded overseas are Sari Ratu, Garuda and Natrabu.

Textiles

In the traditional markets of Indonesia's major cities, many Minangkabau traders are involved as the textile traders. In Jakarta, Minangkabau traders dominate traditional trade centers, such as Tanah Abang, Senen, Blok M, Jatinegara, and Cipulir. The dominance of Minangkabau textile traders also occurred in Medan and Pekan Baru. Besides that, some of Minang textile business centers are Kuala Lumpur, Surabaya, Bandung, Batam, Yogyakarta, and Pekalongan. During the 1940-1950s, Rahman Tamin was one of the largest textile entrepreneurs in Indonesia.

Craftwork

There are many Minangkabau merchants who sell gold products, silverware or shoes. Most of them came from Pandai Sikek and Silungkang. Many of the Sungai Puar people sell antiques. They settled mainly in Cikini and Ciputat (both in Jakarta).

Printing

A significant number of Minangkabau merchants were also involved with publishing houses and printing. Some of notable figures in the printing business were Lukman Sa'ad, Amir Hamzah, Rozali Usman, Rainal Rais, Joesoef Isak and H.M Arbie.

Hospitality

The Indonesian tourism sector is another industry in which Minangkabau merchants operate, building and running hotels and tour travel companies. In Jakarta, Minangkabau businesspeople developed the Grand Menteng hotel chain. Basrizal Koto built the Best Western Hotel in Pekanbaru and Padang. Natrabu Tour, founded by Rahimi Sutan, is a major travel company.

Education

Universities in Jakarta owned by Minangkabaus are Jayabaya University, University of Persada Indonesia YAI, University of Borobudur and The London School of Public Relations.

Media

A number of media (newspaper, magazine and television network) companies were founded by Minangkabaus. They include Oetoesan Melajoe, founded by Sutan Maharaja in 1915; Panji Masyarakat magazine by Hamka; the newspaper Pedoman founded by Rosihan Anwar; Waspada by Ani Idrus, Kartini magazine by Lukman Umar, Femina magazine by Sutan Takdir Alisjahbana's descendants, and Lativi (currently tvOne) by Abdul Latief. In Malaysia, Hussamuddin Yaacub is a Minang tycoon that has a print media business. He founded the Karangkraf Group.

Finance

Minangkabau merchants played a part in developing Indonesia's banking industry. Aside from Anwar Sutan Saidi, who founded Bank Nasional in the 1930s, other Minang merchants such as Sutan Sjahsam, the brother of Sutan Sjahrir, were leading figures in capital markets and financial brokerage. During the New Order era, several Minang businessmen involved in the banking business included Hasyim Ning and Anwar Syukur.

Notable Minangkabau business people

• Hasyim Ning. A Minangkabau merchant in Sukarno's regime who founded the Indonesia Service Company, an automotive service that held a Europe-American automotive brand license. he was known as the Indonesian Henry Ford. In addition to the automotive field, Hasyim found success in the hospitality business, focusing on hotels and tours.
• Abdul Latief. The owner and founder of ALatief Corporation. Its subsidiaries are Pasaraya, a trade retain chain, and TV One, the television network. Latief was a politician and Labour minister in the New Order era.
• Basrizal Koto. Founder of one of a successful Minangkabau conglomerate. Basrizal, usually known as Basko has a hotel, mining company, shopping centre, TV-cable company, and the largest cattle company in South East Asia. Basko's businesses are based in Sumatra, mainly in Pekanbaru and Padang.
• Fahmi Idris. Founder of PT Kodel and a politician in the Golkar party. His businesses were in trading and investment.
• Tunku Tan Sri Abdullah. A Minang-Malaysian businessman. He operated a manufacturing company and an iron and steel company under the corporate flag of the Melewar Corporation.
• Kamarudin Meranun. A Minang-Malaysian businessman who is currently the Chairman of AirAsia and CEO of the Tune Group.
• SM Nasimuddin SM Amin was the founder, chairman and chief executive officer of the Naza Group of Malaysia.

See also

• List of Minangkabau people
• Overseas Minangkabau