Decolonisation and the organisation of the international workforce: Dutch multinationals in Indonesia, 1945–1967

Abstract

This article deals with one particular aspect of economic decolonisation: the inclusion of local managers in the companies of the former colonial powers, in this case, the promotion of Indonesians to managerial and supervisory positions in Dutch multinationals. The Indonesian government blamed Dutch companies for being too slow in training and promoting local managers, and Dutch historiography agreed with that judgement. The replacement of expatriates by local managers, however, should be considered in the broader context of the diverse functions of expatriates. This article argues that for multinationals the use of expatriates is essential for creating a social network that enables knowledge transfer and control. The local subsidiaries profited from the transfer of knowledge and expertise; becoming part of that international network through exchange of staff is more important than getting rid of all expatriates.