The changing nature of oligarchy in Indonesia

The oligarchic spectrum in Indonesia shows how economic power is translated into political dynastic power

By Dr Trissia Wijaya, University of Melbourne; Dr Diatyka Widya Permata Yasih, Universitas Indonesia; Dr Yoes C.Kenawas, Universitas Katolik Atma Jaya; and Dr Fakhridho Susilo, Katadata Insight Center

Back in 2004, there was a broadly cooperative pattern of economic relations between China and the US.

It was also a time when Indonesia’s so-called ‘big bang decentralisation’ – which gave away control of power and resources to subnational governments – started to gain traction.

Neoliberalist market-oriented reforms, like deregulation, privatisation and fiscal discipline were also promoted.

By 2025, this much-celebrated neoliberal globalisation had run its course.

Indonesia’s post-pandemic and legitimacy crisis has resulted in the country renewing its developmentalist strategies, including nickel downstreaming, the banning of nickel exports, digital transformation and infrastructure development – all touted as panaceas amid geoeconomic uncertainties.

But new powerful politico-economic forces have emerged seeking to capitalise on these development agendas.