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

Abstract

This article deals with one particular aspect of economic decolonization: the inclusion of local managers in the companies of the former colonial powers. The Indonesian government blamed Dutch companies, despite their considerable efforts, for being too slow in training and promoting local managers. The replacement of expatriates by local managers, however, should be considered in the broader context of the function of expatriates for multinationals. This article examines the expatriation strategy of Royal Dutch Shell and compares the company’s policies in Indonesia with those of Unilever and Heineken during the period 1945-1965. It argues that for multinationals the use of expatriates is essential for creating a social network that enables knowledge transfer and control. For local subsidiaries, therefore, becoming part of that international network through exchange of staff is more important than getting rid of all expatriates.