Chinese big business in Indonesia. The state of capital.

Abstract

The disintegration of Indonesiaa??s New Order regime in 1998 put an end to the crude forms of centralised authoritarianism and economic protectionism that were essential for the emergence and rise of large Chinese conglomerates, which have dominated the countrya??s private sector. What were the consequences of the democratic transition for Chinese big business? How do business groups adapt to changes in the political environment? Despite massive problems and contrary to expectations, most of the major capitalist groups have in fact succeeded in getting through the economic and political crisis that brought down Soeharto, and are now presiding over refashioned but still thriving corporations. This study identifies the strategies the tycoons employed to survive in an unfamiliar, initially threatening post-authoritarian regime, thereby revealing the dynamics of power and the particular structural position of big business in an increasingly plutocratic post-Soeharto Indonesian political economy.