Politics and International Relations
The theories of oligarchy have become increasingly influential in explaining and understanding the capitalist transformation and politics in Indonesia. This article critically engages with this model and suggests that undoubted explanatory power needs to be located within the context of the internationalization of capital and the resulting internationalization of the state. In particular, this study argues that the oligarchic politics are symptomatic of the changing structure, organisation and operation of the Indonesian bourgeoisie within the global and regional capitalist order. It is these changes in the internationalization of capital that have led to new forms of social alliances often cemented through the electoral politics in the post Suharto era. A key component of this internationalization of capital has contributed to the deepening of oligarchic coalitions beyond state frontiers, especially at regional level across Southeast Asia, involving networks of capitalists, state apparatuses and other social forces. This capitalist transformation is a key feature of internationalization of the state promoting various forms of crony capitalism in the region.