One of the missing point from the explanation of company acquisition is Soekarno’s strategy to create an Indonesian currency ( ORI), to created a local purchasing power which able to challeged the international based currency at his era, the Bretton Woods USD pegged with gold. ORI’s Soekarno did the similar action with Saddam’s Dinar 1987, Saddam’s Euro 2000, and Khaddafi’s Euro 2010.
Soekarno valuated the future value of Indonesian’s spices and mostly natural resources to created base price for first ORI launching. That currency game play as a powerfull monetary fortress to maintain the national purchasing power, while the government bought the foreign company asset, without creating a long term debt burden for the nation ( and it’s people).
Without currency strategy, it would be difficult to bought that asset, our people need stable currency to feed themselves, for daily living, at that time. Without currency strategy, it was impossible to maintain the ownership and operating the company more than 5 years period, the foreign player will bought back their asset after devaluating the national currency, with money market strategy.
Soekarno was a brilliant mastermind, only if educated modern young men understand the monetary strategy, business trading, and tribal currency, better than people at Soekarno’s era. The modern nation state is a transformation from the tribal kingdom nation, the debt mechanism for international trade still maintaining the ancient rule of law.
Who’s owning the commodity? Who’s creating the credit mechanism? Who’s controlling the prices? If the credit issuer and the price controller are the similar faction, then the commodity owner betting against the house. At gambling, never ever against the house, sooner or later the house will own your asset. You will always lose, and the house always win, this is a simple international game play.
Soekarno understand the commodity prices and the credit prices should be separated. The currency game play will gaming the value of the currency, and the international credit mechanism, while the people may think that they own the commodity. For a moment, the Indonesians thought that they were rich, abundance with natural resources, but then they were too late to understand, they weren’t the one who created the price, their currency was inferior, and they will lose the ownership of their land and water.
Too bad, the current condition seems getting worst than before.