Capitalism, Oligarchic Power and the State in Indonesia

In: Historical materialism: research in critical marxist theory, Heft 8, S. 119-151

Abstract

The nature of Indonesia's contemporary political economy after the fall of Soeharto's New Order regime is studied, emphasizing the role of the Indonesian state in supporting capitalist development approaches. An overview of contemporary scholarship on Indonesia's political economy is presented, emphasizing scholars' use of modernization & dependency theory perspectives. An additional overview of the historical context in which oligarchic interests arose in Indonesia prior to Soeharto's New Order & the strategies used by this oligarchy to acquire state power during the late 20th century is provided. The subsequent political insulation of the nation's oligarchy, the state's restrictions upon labor movements during Soeharto's regime, & the nature of labor mobilization after Soeharto's downfall in 1998 are then considered. Although political processes have become more democratic in post-Soeharto Indonesia, it is suggested that the nation's money-elite will attempt to gain state power again in order to further private interests; consequently, the need to determine whether current political actors represent the same interests possessed by the former oligarchy is stressed. 84 References. J. W. Parker