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The Loa Joe Djin-Case: A Trigger To Change

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Chapter Summary

This chapter describes the business experience and survival strategy of Margo-Redjo (a Chinese-owned coffee company based in Semarang) during the economic crisis of the 1930s. The example of Margo- Redjo shows how a smaller Chinese-owned enterprise survived the crisis by analyzing its business environment and adopting a clever marketing policy. The chapter gives some information concerning the economic depression of the 1930s with special reference to the economic situation of the Netherlands Indies within a changing global environment. This is followed by a discussion on the policy response of the Dutch colonial administration. A response aimed at achieving greater economic independence as a result of the encroachment of Japanese business and worldwide economic protectionism. Against this background the survival strategy of Margo-Redjo is described and analyzed in detail, in an attempt to show the versatility and creativity of entrepreneurial conduct in times of crisis.

Keywords:crisis management; Dutch colonial administration; Japanese business; Margo-Redjo; Netherlands



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